Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-12139 | |
Entity Registrant Name | SEALED AIR CORP/DE | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 65-0654331 | |
Entity Address, Address Line One | 2415 Cascade Pointe Boulevard | |
Entity Address, City or Town | Charlotte | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28208 | |
City Area Code | 980 | |
Local Phone Number | 221-3235 | |
Title of 12(b) Security | Common Stock, par value $0.10 per share | |
Trading Symbol | SEE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 145,614,668 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001012100 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 352.8 | $ 346.1 |
Trade receivables, net of allowance for credit losses of $14.8 in 2024 and $14.9 in 2023 | 461.5 | 442.6 |
Income tax receivables | 27.6 | 44.9 |
Other receivables | 92.2 | 94.2 |
Advances and deposits | 69.7 | 72.8 |
Inventories, net of inventory reserves of $50.0 in 2024 and $43.3 in 2023 (Note 7) | 790.2 | 774.3 |
Prepaid expenses and other current assets | 198.8 | 188.4 |
Total current assets | 1,992.8 | 1,963.3 |
Property and equipment, net (Note 8) | 1,411.2 | 1,416.4 |
Goodwill (Note 9) | 2,887.7 | 2,892.5 |
Identifiable intangible assets, net (Note 9) | 425.6 | 439 |
Deferred taxes | 130.7 | 130.8 |
Operating lease right-of-use-assets (Note 4) | 80.3 | 86.5 |
Other non-current assets | 271 | 272.1 |
Total assets | 7,199.3 | 7,200.6 |
Current liabilities: | ||
Short-term borrowings (Note 13) | 134.6 | 140.7 |
Current portion of long-term debt (Note 13) | 43.5 | 35.7 |
Current portion of operating lease liabilities (Note 4) | 27.4 | 29.2 |
Accounts payable | 811.8 | 764.6 |
Accrued restructuring costs (Note 12) | 28.8 | 23.1 |
Income tax payable | 28.2 | 28.7 |
Other current liabilities | 428.5 | 487 |
Total current liabilities | 1,502.8 | 1,509 |
Long-term debt, less current portion (Note 13) | 4,484.2 | 4,513.9 |
Long-term operating lease liabilities, less current portion (Note 4) | 61.8 | 66.7 |
Deferred taxes | 34.6 | 35.8 |
Other non-current liabilities | 517.6 | 525.7 |
Total liabilities | 6,601 | 6,651.1 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.10 par value per share, 50,000,000 shares authorized; no shares issued in 2024 and 2023 | 0 | 0 |
Common stock, $0.10 par value per share, 400,000,000 shares authorized; shares issued: 154,486,042 in 2024 and 154,054,011 in 2023; shares outstanding: 145,607,340 in 2024 and 144,467,719 in 2023 | 15.4 | 15.4 |
Additional paid-in capital | 1,423.4 | 1,429.5 |
Retained earnings | 548.9 | 496.5 |
Common stock in treasury, 8,878,702 shares in 2024 and 9,586,292 shares in 2023 | (404.2) | (436.4) |
Accumulated other comprehensive loss, net of taxes (Note 20) | (985.2) | (955.5) |
Total stockholders’ equity | 598.3 | 549.5 |
Total liabilities and stockholders’ equity | $ 7,199.3 | $ 7,200.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 14.8 | $ 14.9 |
Inventory reserves | $ 50 | $ 43.3 |
Preferred stock, par value per share (in dollars per share) | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares, issued (in shares) | 154,486,042 | 154,054,011 |
Common stock, shares, outstanding (in shares) | 145,607,340 | 144,467,719 |
Treasury stock, shares (in shares) | 8,878,702 | 9,586,292 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 1,329.6 | $ 1,348.8 |
Cost of sales | 928.8 | 943.7 |
Gross profit | 400.8 | 405.1 |
Selling, general and administrative expenses | 185.5 | 221.6 |
Amortization expense of intangible assets | 14.8 | 15.2 |
Restructuring charges (Note 12) | 15.5 | (1.2) |
Operating profit | 185 | 169.5 |
Interest expense, net | (65.1) | (57.8) |
Other expense, net (Note 21) | (0.8) | (15) |
Earnings before income tax provision | 119.1 | 96.7 |
Income tax provision (Note 17) | 35.7 | 33.8 |
Net earnings from continuing operations | 83.4 | 62.9 |
Loss on sale of discontinued operations, net of tax | (1.4) | (1) |
Net earnings | $ 82 | $ 61.9 |
Basic: | ||
Continuing operations (in dollars per share) | $ 0.58 | $ 0.44 |
Discontinued operations (in dollars per share) | (0.01) | (0.01) |
Net earnings per common share - basic (in dollars per share) | 0.57 | 0.43 |
Diluted: | ||
Continuing operations (in dollars per share) | 0.57 | 0.44 |
Discontinued operations (in dollars per share) | (0.01) | (0.01) |
Net earnings per common share - diluted (n dollars per share) | $ 0.56 | $ 0.43 |
Weighted average number of common shares outstanding: (Note 22) | ||
Basic (in shares) | 144.9 | 144.1 |
Diluted (in shares) | 145.4 | 144.8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 82 | $ 61.9 |
Gross | ||
Recognition of pension items | 1.2 | 1.7 |
Unrealized gains (losses) on derivative instruments for net investment hedge | 11.2 | (7.3) |
Unrealized gains (losses) on derivative instruments for cash flow hedge | 2 | (3.8) |
Foreign currency translation adjustments | (40.4) | 36.6 |
Other comprehensive (loss) income | (26) | 27.2 |
Taxes | ||
Recognition of pension items | (0.3) | (0.4) |
Unrealized gains (losses) on derivative instruments for net investment hedge | (2.8) | 1.8 |
Unrealized gains (losses) on derivative instruments for cash flow hedge | (0.6) | 1 |
Foreign currency translation adjustments | 0 | 0 |
Other comprehensive (loss) income | (3.7) | 2.4 |
Net | ||
Recognition of pension items | 0.9 | 1.3 |
Unrealized gains (losses) on derivative instruments for net investment hedge | 8.4 | (5.5) |
Unrealized gains (losses) on derivative instruments for cash flow hedge | 1.4 | (2.8) |
Foreign currency translation adjustments | (40.4) | 36.6 |
Other comprehensive (loss) income | (29.7) | 29.6 |
Comprehensive income, net of taxes | $ 52.3 | $ 91.5 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock in Treasury | Accumulated Other Comprehensive Loss, Net of Taxes |
Balance at beginning of period at Dec. 31, 2022 | $ 344.1 | $ 23.3 | $ 2,155.3 | $ 3,163.4 | $ (4,019.1) | $ (978.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of share-based incentive compensation | (3.3) | 0.1 | (3.4) | |||
Stock issued for profit sharing contribution paid in stock | 23.9 | 0.9 | 23 | |||
Repurchases of common stock | (79.9) | (79.9) | ||||
Recognition of pension items, net of taxes | 1.3 | 1.3 | ||||
Foreign currency translation adjustments | 36.6 | 36.6 | ||||
Unrealized gain (loss) on derivative instruments, net of taxes | (8.3) | (8.3) | ||||
Net earnings | 61.9 | 61.9 | ||||
Dividends on common stock | (29.8) | (29.8) | ||||
Balance at end of period at Mar. 31, 2023 | 346.5 | 23.4 | 2,152.8 | 3,195.5 | (4,076) | (949.2) |
Balance at beginning of period at Dec. 31, 2023 | 549.5 | 15.4 | 1,429.5 | 496.5 | (436.4) | (955.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Effect of share-based incentive compensation | 0.7 | 0 | 0.7 | |||
Stock issued for profit sharing contribution paid in stock | 25.4 | (6.8) | 32.2 | |||
Recognition of pension items, net of taxes | 0.9 | 0.9 | ||||
Foreign currency translation adjustments | (40.4) | (40.4) | ||||
Unrealized gain (loss) on derivative instruments, net of taxes | 9.8 | 9.8 | ||||
Net earnings | 82 | 82 | ||||
Dividends on common stock | (29.6) | (29.6) | ||||
Balance at end of period at Mar. 31, 2024 | $ 598.3 | $ 15.4 | $ 1,423.4 | $ 548.9 | $ (404.2) | $ (985.2) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | ||
Feb. 21, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share common stock (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net earnings | $ 82 | $ 61.9 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation and amortization | 59.7 | 55.9 |
Share-based incentive compensation | 8.5 | 17.6 |
Profit sharing expense | 6.9 | 6.8 |
Loss on debt redemption and refinancing activities | 0 | 4.9 |
Provision for allowance for credit losses on trade receivables | 0.9 | 2.2 |
Provisions for inventory obsolescence | 6.1 | 5.4 |
Deferred taxes, net | (7.2) | (2.8) |
Net loss on disposal/sale of businesses | 1.4 | 1 |
Other non-cash items | (4.4) | 11.6 |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (28.9) | 30.1 |
Inventories, net | (33.5) | (32) |
Accounts payable | 47.7 | (62.8) |
Customer advance payments | (3) | 4.7 |
Income tax receivable/payable | 17.2 | 12.7 |
Other assets and liabilities | (28.3) | (65.3) |
Net cash provided by operating activities | 125.1 | 51.9 |
Cash flows from investing activities: | ||
Capital expenditures | (47.1) | (64.9) |
Proceeds related to sale of business and property and equipment, net | 0.2 | 0.6 |
Businesses acquired in purchase transactions, net of cash acquired | 4.2 | (1,148) |
Net cash used in investing activities | (38) | (1,206.9) |
Cash flows from financing activities: | ||
Net (payments) proceeds from short-term borrowings | (3.7) | 167.9 |
Proceeds from long-term debt | 0 | 1,411.4 |
Payments of long-term debt | (25.3) | (432.8) |
Payments of debt modification/extinguishment costs and other | 0 | (13.1) |
Dividends paid on common stock | (30.5) | (31.1) |
Impact of tax withholding on share-based compensation | (7.8) | (21) |
Repurchases of common stock | 0 | (79.9) |
Principal payments related to financing leases | (1.8) | (2.3) |
Net cash (used in) provided by financing activities | (69.1) | 999.1 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (11.3) | 2.9 |
Cash and cash equivalents | 346.1 | 456.1 |
Restricted cash and cash equivalents | 0 | 0 |
Balance, beginning of period | 346.1 | 456.1 |
Net change during the period | 6.7 | (153) |
Cash and cash equivalents | 352.8 | 303.1 |
Restricted cash and cash equivalents | 0 | 0 |
Balance, end of period | 352.8 | 303.1 |
Supplemental Cash Flow Information: | ||
Interest payments | 80.5 | 50.8 |
Income tax payments, net of cash refunds | 20.9 | 14 |
Restructuring payments including associated costs | 14.3 | 3.1 |
Non-cash items: | ||
Transfers of shares of common stock from treasury for profit-sharing contributions | 25.4 | 23.9 |
Foreign currency forward contracts | ||
Cash flows from investing activities: | ||
Settlement of foreign currency forward contracts and cross currency swaps | 3.1 | 5.4 |
Cross-currency swaps | ||
Cash flows from investing activities: | ||
Settlement of foreign currency forward contracts and cross currency swaps | $ 1.6 | $ 0 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization We are a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment, and services. Sealed Air Corporation designs, manufactures and delivers packaging solutions that preserve food, protect goods, and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our portfolio of solutions includes CRYOVAC ® brand food packaging, LIQUIBOX ® brand liquids systems, SEALED AIR ® brand protective packaging, AUTOBAG ® brand automated packaging systems and BUBBLE WRAP ® brand packaging. We have established competitive strengths in high-performance packaging solutions, well-established customer relationships, iconic brands, and global scale and market access. Throughout this report, when we refer to “Sealed Air,” “SEE,” the “Company,” “we,” “our,” or “us,” we are referring to Sealed Air Corporation and all of our subsidiaries, except where the context indicates otherwise. Basis of Presentation Our Condensed Consolidated Financial Statements include all of the accounts of the Company and our subsidiaries. We have eliminated all significant intercompany transactions and balances in consolidation. In management’s opinion, all adjustments, consisting only of normal recurring accruals, necessary for a fair statement of our Condensed Consolidated Balance Sheet as of March 31, 2024 and our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 have been made. The results set forth in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and in our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year. The Condensed Consolidated Balance Sheet as of December 31, 2023 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. All amounts are in millions, except per share amounts, and are approximate due to rounding. All amounts are presented in U.S. dollar, unless otherwise specified. Our Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. We are responsible for the unaudited Condensed Consolidated Financial Statements and notes included in this report. As these are condensed financial statements, they should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“2023 Form 10-K”), which was filed with the SEC on February 27, 2024, and with the information contained in our other publicly available filings with the SEC. When we cross reference to a “Note,” we are referring to our “Notes to Condensed Consolidated Financial Statements,” unless the context indicates otherwise. There were no significant changes to our significant accounting policies as disclosed in “Note 2 – Summary of Significant Accounting Policies and Recently Adopted and Issued Accounting Standards” of our audited consolidated financial statements and notes thereto included in our 2023 Form 10-K. Impact of Highly Inflationary Economy Argentina Economic and political events in Argentina have continued to expose us to heightened levels of foreign currency exchange risk. As of July 1, 2018, Argentina was designated as a highly inflationary economy under U.S. GAAP, and the U.S. dollar replaced the Argentine peso as the functional currency for our subsidiary in Argentina. All Argentine peso-denominated monetary assets and liabilities were remeasured into U.S. dollars using the current exchange rate available to us. The impact of any changes in the exchange rate are reflected within Other expense, net on the Condensed Consolidated Statements of Operations. The Company recorded $4.9 million and $2.6 million of remeasurement losses for the three months ended March 31, 2024 and 2023, respectively, related to our subsidiary in Argentina. |
Recently Adopted and Issued Acc
Recently Adopted and Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Recently Adopted and Issued Accounting Standards | Recently Adopted and Issued Accounting Standards Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations ("ASU 2022-04"). ASU 2022-04 requires the buyer in a supplier finance program to disclose qualitative and quantitative information about the program. The Company adopted ASU 2022-04 on January 1, 2023, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The adoption did not materially impact the Company's Condensed Consolidated Financial Statements. We facilitate a voluntary supply chain financing program to provide some of our suppliers with the opportunity to sell receivables due from us (our accounts payables) to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. This program is administered by participating financial institutions. When a supplier utilizes the supply chain financing program, the supplier receives a payment in advance of agreed payment terms from the financial institution, net of a discount charged. Our responsibility is limited to making payments to the respective financial institutions on the terms originally negotiated with our supplier. We monitor our days payable outstanding relative to our peers and industry trends in order to assess our conclusion that the program continues to be a trade payable program and not indicative of a borrowing arrangement. The liabilities continue to be presented as Accounts payable in our Condensed Consolidated Balance Sheets until they are paid, and they are reflected as Cash flows from operating activities when settled. At March 31, 2024 and December 31, 2023, our accounts payable balances included $164.2 million and $153.0 million, respectively, related to invoices from suppliers participating in the program. Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires the annual disclosure of specific categories in the rate reconciliation and additional information for the reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 requires annual and interim disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), the disclosure and description of other segment items, the inclusion of all current annual disclosures about a reportable segment in interim periods, allows for disclosure of multiple measures of a reportable segment's profit or loss, requires disclosure of the CODM's title and position, and requires a description of how the CODM uses reported measures in assessing the performance of reportable segments and in making decisions pertaining to allocation of resources. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures. |
Revenue Recognition, Contracts
Revenue Recognition, Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Contracts with Customers | Revenue Recognition, Contracts with Customers Description of Revenue Generating Activities We employ sales, marketing and customer service personnel throughout the world who sell and market our products, services, equipment and systems. As discussed in Note 6, “Segments,” our reporting segments are Food and Protective. Our Food solutions are largely sold directly to end customers, while our Protective solutions are sold through business supply distributors and directly to end customers. Food: Food solutions are sold to food processors in fresh red meat, smoked and processed meats, poultry, seafood, fluids and liquids, cheese, and other food markets worldwide. Food offers integrated packaging materials and automated equipment solutions to increase food safety, extend shelf life, reduce food waste, automate processes and optimize total cost. Its materials, automated equipment and service enable customers to reduce costs and enhance their brands in the marketplace. Food solutions are utilized by food service businesses (such as restaurants and entertainment venues) (“food service”) and food retailers (such as grocery stores and supermarkets) (“food retail”), among others. Solutions serving the food service market include products such as barrier bags and pouches, and are primarily marketed under the CRYOVAC ® trademark and other highly recognized trade names including CRYOVAC ® brand Barrier Bags, CRYOVAC ® brand Form-Fill-Seal Films, CRYOVAC ® brand Auto Pouch Systems and LIQUIBOX ® brand liquids systems. Solutions serving the food retail market include products such as barrier bags, film, and trays, and are primarily marketed under the CRYOVAC ® trademark and other highly recognized trade names including CRYOVAC ® brand Grip & Tear TM , CRYOVAC ® brand Darfresh ® , OptiDure™, Simple Steps ® , and CRYOVAC ® brand Barrier Bags. Protective: Protective packaging solutions are utilized across many global markets to protect goods during transit and are especially valuable to e-commerce, consumer goods, pharmaceutical and medical devices and industrial manufacturing. Protective solutions are designed to increase our customers' packaging velocity, minimize packaging waste, reduce labor dependencies and address dimensional weight challenges. Protective solutions are sold through a strategic network of distributors as well as directly to our customers, including, but not limited to, fabricators, original equipment manufacturers, contract manufacturers, logistics partners and e-commerce/fulfillment operations. Protective solutions are marketed under SEALED AIR ® brand, BUBBLE WRAP ® brand, AUTOBAG ® brand and other highly recognized trade names and product families including BUBBLE WRAP ® brand inflatable packaging, SEALED AIR ® brand performance shrink films, AUTOBAG ® brand bagging systems, Instapak ® polyurethane foam packaging solutions and Korrvu ® suspension and retention packaging. Other Revenue Recognition Considerations: Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. Revenue recognized from performance obligations satisfied in previous reporting periods was $1.1 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively. The Company does not adjust consideration in contracts with customers for the effects of a significant financing component if the Company expects that the period between transfer of a good or service and payment for that good or service will be one year or less. This is expected to be the case for the majority of the Company's contracts. Lease components within contracts with customers are recognized in accordance with Accounting Standards Codification (“ASC”) Topic 842. Disaggregated Revenue For the three months ended March 31, 2024 and 2023, revenues from contracts with customers summarized by Segment and Geographic region were as follows: Three Months Ended (In millions) Food Protective Total Americas $ 578.6 $ 296.3 $ 874.9 EMEA 172.7 99.5 272.2 APAC 110.9 63.5 174.4 Topic 606 Segment Revenue 862.2 459.3 1,321.5 Non-Topic 606 Revenue (Leasing: Sales-type and Operating) 6.2 1.9 8.1 Total $ 868.4 $ 461.2 $ 1,329.6 Three Months Ended (In millions) Food Protective Total Americas $ 566.1 $ 306.2 $ 872.3 EMEA 169.2 119.6 288.8 APAC 112.3 68.6 180.9 Topic 606 Segment Revenue 847.6 494.4 1,342.0 Non-Topic 606 Revenue (Leasing: Sales-type and Operating) 5.5 1.3 6.8 Total $ 853.1 $ 495.7 $ 1,348.8 Contract Balances The time when a performance obligation is satisfied and the time when billing and payment occur are generally closely aligned, subject to agreed payment terms, with the exception of equipment accruals. An equipment accrual is a contract offering, whereby a customer is incentivized to use a portion of the materials transaction price for future equipment purchases. Long-term contracts that include an equipment accrual create a timing difference between when cash is collected and when the performance obligation is satisfied, resulting in a contract liability (unearned revenue). The following contract assets and liabilities are included within Prepaid expenses and other current assets and Other current liabilities, or Other non-current liabilities on our Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: (In millions) March 31, 2024 December 31, 2023 Contract assets $ 0.4 $ 0.4 Contract liabilities $ 20.6 $ 19.9 The contract liability balances represent deferred revenue, primarily related to equipment accruals. Revenue recognized in the three months ended March 31, 2024 and 2023 that was included in the contract liability balance at the beginning of the period was $2.6 million and $4.6 million, respectively. This revenue was driven primarily by equipment performance obligations being satisfied. Remaining Performance Obligations The following table summarizes the estimated transaction price from contracts with customers allocated to performance obligations or portions of performance obligations that have not yet been satisfied as of March 31, 2024 and December 31, 2023, as well as the expected timing of recognition of that transaction price. (In millions) March 31, 2024 December 31, 2023 Short-Term (12 months or less) (1) $ 13.3 $ 13.3 Long-Term 7.3 6.6 Total transaction price $ 20.6 $ 19.9 (1) |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Lessor SEE has contractual obligations as a lessor with respect to some of our automation and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price. Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise. All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at March 31, 2024 and December 31, 2023 were as follows: (In millions) March 31, 2024 December 31, 2023 Short-Term (12 months or less) $ 8.7 $ 8.5 Long-Term 33.3 33.3 Lease receivables $ 42.0 $ 41.8 Sales-type and operating lease revenue was less than 1% of net trade sales for the three months ended March 31, 2024 and year ended December 31, 2023. Lessee SEE has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles, and material production equipment. The following table details our lease obligations included in our Condensed Consolidated Balance Sheets. (In millions) March 31, 2024 December 31, 2023 Other non-current assets: Finance leases - ROU assets $ 37.5 $ 36.0 Finance leases - Accumulated depreciation (15.3) (14.9) Operating lease right-of-use-assets: Operating leases - ROU assets 195.5 203.1 Operating leases - Accumulated depreciation (115.2) (116.6) Total lease assets $ 102.5 $ 107.6 Current portion of long-term debt: Finance leases $ (7.1) (6.7) Current portion of operating lease liabilities: Operating leases (27.4) (29.2) Long-term debt, less current portion: Finance leases (13.8) (12.8) Long-term operating lease liabilities, less current portion: Operating leases (61.8) (66.7) Total lease liabilities $ (110.1) $ (115.4) At March 31, 2024, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows: (In millions) Finance leases Operating leases Remainder of 2024 $ 6.6 $ 24.9 2025 6.1 27.5 2026 4.1 21.2 2027 1.9 12.1 2028 1.0 7.1 Thereafter 8.1 10.3 Total lease payments 27.8 103.1 Less: Interest (6.9) (13.9) Present value of lease liabilities $ 20.9 $ 89.2 The following lease cost is included in our Condensed Consolidated Statements of Operations: Three Months Ended (In millions) 2024 2023 Lease cost (1) Finance leases Amortization of ROU assets $ 2.0 $ 2.5 Interest on lease liabilities 0.4 0.4 Operating leases 9.4 9.0 Short-term lease cost 0.2 0.6 Variable lease cost 1.7 1.8 Total lease cost $ 13.7 $ 14.3 (1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations. The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new right-of-use (“ROU”) assets included in our Condensed Consolidated Balance Sheets: Three Months Ended (In millions) 2024 2023 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - finance leases $ 0.9 $ 1.1 Operating cash flows - operating leases $ 9.8 $ 9.1 Financing cash flows - finance leases $ 1.8 $ 2.3 ROU assets obtained in exchange for new finance lease liabilities $ 3.3 $ 5.9 ROU assets obtained in exchange for new operating lease liabilities $ 2.3 $ 20.8 Three Months Ended 2024 2023 Weighted average information: Finance leases Remaining lease term (in years) 5.9 8.3 Discount rate 7.5 % 6.3 % Operating leases Remaining lease term (in years) 4.3 4.4 Discount rate 6.0 % 5.3 % |
Leases | Leases Lessor SEE has contractual obligations as a lessor with respect to some of our automation and equipment solutions including "free on loan" equipment and leased equipment, both sales-type and operating. The consideration in a contract that contains both lease and non-lease components is allocated based on the standalone selling price. Our contractual obligations for operating leases can include termination and renewal options. Our contractual obligations for sales-type leases tend to have fixed terms and can include purchase options. We utilize the reasonably certain threshold criteria in determining which options our customers will exercise. All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at March 31, 2024 and December 31, 2023 were as follows: (In millions) March 31, 2024 December 31, 2023 Short-Term (12 months or less) $ 8.7 $ 8.5 Long-Term 33.3 33.3 Lease receivables $ 42.0 $ 41.8 Sales-type and operating lease revenue was less than 1% of net trade sales for the three months ended March 31, 2024 and year ended December 31, 2023. Lessee SEE has contractual obligations as a lessee with respect to warehouses, offices and manufacturing facilities, IT equipment, automobiles, and material production equipment. The following table details our lease obligations included in our Condensed Consolidated Balance Sheets. (In millions) March 31, 2024 December 31, 2023 Other non-current assets: Finance leases - ROU assets $ 37.5 $ 36.0 Finance leases - Accumulated depreciation (15.3) (14.9) Operating lease right-of-use-assets: Operating leases - ROU assets 195.5 203.1 Operating leases - Accumulated depreciation (115.2) (116.6) Total lease assets $ 102.5 $ 107.6 Current portion of long-term debt: Finance leases $ (7.1) (6.7) Current portion of operating lease liabilities: Operating leases (27.4) (29.2) Long-term debt, less current portion: Finance leases (13.8) (12.8) Long-term operating lease liabilities, less current portion: Operating leases (61.8) (66.7) Total lease liabilities $ (110.1) $ (115.4) At March 31, 2024, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows: (In millions) Finance leases Operating leases Remainder of 2024 $ 6.6 $ 24.9 2025 6.1 27.5 2026 4.1 21.2 2027 1.9 12.1 2028 1.0 7.1 Thereafter 8.1 10.3 Total lease payments 27.8 103.1 Less: Interest (6.9) (13.9) Present value of lease liabilities $ 20.9 $ 89.2 The following lease cost is included in our Condensed Consolidated Statements of Operations: Three Months Ended (In millions) 2024 2023 Lease cost (1) Finance leases Amortization of ROU assets $ 2.0 $ 2.5 Interest on lease liabilities 0.4 0.4 Operating leases 9.4 9.0 Short-term lease cost 0.2 0.6 Variable lease cost 1.7 1.8 Total lease cost $ 13.7 $ 14.3 (1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations. The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new right-of-use (“ROU”) assets included in our Condensed Consolidated Balance Sheets: Three Months Ended (In millions) 2024 2023 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - finance leases $ 0.9 $ 1.1 Operating cash flows - operating leases $ 9.8 $ 9.1 Financing cash flows - finance leases $ 1.8 $ 2.3 ROU assets obtained in exchange for new finance lease liabilities $ 3.3 $ 5.9 ROU assets obtained in exchange for new operating lease liabilities $ 2.3 $ 20.8 Three Months Ended 2024 2023 Weighted average information: Finance leases Remaining lease term (in years) 5.9 8.3 Discount rate 7.5 % 6.3 % Operating leases Remaining lease term (in years) 4.3 4.4 Discount rate 6.0 % 5.3 % |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions LB Holdco, Inc. Acquisition On February 1, 2023, SEE acquired 100% of the outstanding shares of capital stock of LB Holdco, Inc., the parent company of Liquibox, Inc. (collectively, "Liquibox"), a pioneer, innovator and manufacturer of Bag-in-Box fluids and liquids packaging and dispensing solutions for food, beverage, consumer goods and industrial end markets. The acquisition is included in our Food reporting segment. Consideration paid was approximately $1.16 billion in cash. In March of 2024, subsequent to the closure of the measurement period, we reached a final purchase price settlement with the seller of $3.5 million, which was recorded as income within Other expense, net on the Condensed Consolidated Statements of Operations. We financed the consideration paid and related fees and expenses through borrowings under our senior secured credit facility, proceeds from the issuance of senior notes, and cash on hand. See Note 13, "Debt and Credit Facilities," for additional details. For the three months ended March 31, 2023, acquisition-related expenses recognized for the Liquibox acquisition were $11.9 million. These expenses are included within Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The following table summarizes the consideration transferred to acquire Liquibox and the allocation of the purchase price among the assets acquired and liabilities assumed, including measurement period adjustments recorded through the finalized purchase price allocation on December 31, 2023. Preliminary Allocation Measurement Period Final Allocation (In millions) As of February 1, 2023 Adjustments December 31, 2023 Total consideration transferred $ 1,169.2 $ (2.1) $ 1,167.1 Assets acquired: Cash and cash equivalents 21.2 — 21.2 Trade receivables 48.6 (0.8) 47.8 Inventories 61.6 (2.8) 58.8 Prepaid expenses and other current assets 15.8 (1.7) 14.1 Property and equipment 101.1 (8.2) 92.9 Identifiable intangible assets 342.1 4.2 346.3 Operating lease right-of-use-assets 15.1 — 15.1 Other non-current assets 9.5 (1.5) 8.0 Total assets acquired $ 615.0 $ (10.8) $ 604.2 Liabilities assumed: Accounts payable 27.0 (1.4) 25.6 Current portion of long-term debt 0.1 — 0.1 Current portion of operating lease liabilities 3.7 — 3.7 Other current liabilities 28.4 2.8 31.2 Long-term debt, less current portion 5.1 — 5.1 Long-term operating lease liabilities, less current portion 11.4 — 11.4 Deferred taxes 92.2 (35.1) 57.1 Other non-current liabilities 6.6 (4.2) 2.4 Total liabilities assumed $ 174.5 $ (37.9) $ 136.6 Net assets acquired 440.5 27.1 467.6 Goodwill $ 728.7 $ (29.2) $ 699.5 The following table summarizes the identifiable intangible assets and their useful lives. Amount Useful life (In millions) (In years) Customer relationships $ 186.4 11.0 Trademarks and tradenames 26.0 10.0 Software 3.7 2.0 Technology 130.2 12.0 Total intangible assets with definite lives $ 346.3 Goodwill is a result of the synergies that are expected to originate from the combination of Cryovac and Liquibox solutions for the Company, as well as growth of our sustainable packaging portfolio. This goodwill is not deductible for tax purposes. The goodwill balance associated with Liquibox is included in the Food reportable segment. Liquibox Supplemental Information The following table presents the amounts of net sales and net loss attributed to Liquibox since the acquisition date that are included in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2023: (In millions) February 1, 2023 through March 31, 2023 Net sales $ 57.3 Net loss $ (5.4) Pro Forma Financial Information The following table presents the Company’s unaudited pro forma financial information for the three months ended March 31, 2023, assuming the acquisition of Liquibox had occurred on January 1, 2022. The information below reflects pro forma adjustments based on available information and certain assumptions that SEE believes are factual and supportable. The unaudited pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2022 and is not intended to be a projection of future results and gives no effect to any future synergistic benefits that may result from the combination or the costs of integrating the acquired operations with those of the Company. (In millions) Three Months Ended Net sales $ 1,374.4 Net earnings $ 70.0 The unaudited pro forma financial information includes, where applicable, adjustments for (i) additional expense from the fair value step-up of inventory, (ii) additional amortization expense related to acquired intangible assets, (iii) additional depreciation expense related to acquired property and equipment, (iv) transaction costs and other one-time non-recurring costs, (v) additional interest expense for borrowings related to the acquisition and amortization associated with fair value adjustments of debt assumed, and (vi) associated tax-related impacts of adjustments. Other 2023 Acquisition Activity During the second quarter of 2023, Food had other acquisition activity resulting in a total purchase price paid of $14.9 million. The Company finalized the allocation of the consideration transferred to the fair value of assets acquired in the third quarter of 2023, resulting in an allocation to goodwill of $7.9 million. There were no other identifiable intangible assets acquired. This acquisition activity is expected to supplement our developmental efforts for sustainable packaging and accelerate our speed to market for certain sustainable solutions. This acquisition activity was not material to our Condensed Consolidated Financial Statements. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company’s segment reporting structure consists of two reportable segments as follows and a Corporate category: • Food • Protective The Company’s Food and Protective segments are considered reportable segments under FASB ASC Topic 280. Our reportable segments are aligned with similar groups of products. Corporate includes certain costs that are not allocated to the reportable segments. The Company evaluates performance of the reportable segments based on the results of each segment. The performance metric used by the Company's chief operating decision maker to evaluate performance of our reportable segments is Segment Adjusted EBITDA. The Company allocates expense to each segment based on various factors including direct usage of resources, allocation of headcount, allocation of software licenses or, in cases where costs are not clearly delineated, costs may be allocated on portion of either net trade sales or an expense factor such as cost of sales. We allocate and disclose depreciation and amortization expense to our segments, although depreciation and amortization are not included in the segment performance metric Segment Adjusted EBITDA. We also allocate and disclose restructuring charges by segment, although they are not included in the segment performance metric Segment Adjusted EBITDA since restructuring charges are categorized as Special Items (as identified below). The accounting policies of the reportable segments and Corporate are the same as those applied to the Condensed Consolidated Financial Statements. The following tables show Net sales and Segment Adjusted EBITDA by reportable segment: Three Months Ended (In millions) 2024 2023 Net sales: Food $ 868.4 $ 853.1 As a % of Consolidated net sales 65.3 % 63.2 % Protective 461.2 495.7 As a % of Consolidated net sales 34.7 % 36.8 % Consolidated Net sales $ 1,329.6 $ 1,348.8 Three Months Ended (In millions) 2024 2023 Segment Adjusted EBITDA: Food $ 189.6 $ 194.8 Adjusted EBITDA Margin 21.8 % 22.8 % Protective 89.5 80.4 Adjusted EBITDA Margin 19.4 % 16.2 % Total Segment Adjusted EBITDA $ 279.1 $ 275.2 The following table shows a reconciliation of Segment Adjusted EBITDA to Earnings before income tax provision: Three Months Ended (In millions) 2024 2023 Food Adjusted EBITDA $ 189.6 $ 194.8 Protective Adjusted EBITDA 89.5 80.4 Corporate Adjusted EBITDA (0.8) (7.9) Interest expense, net (65.1) (57.8) Depreciation and amortization, net of adjustments (1) (60.9) (68.9) Special Items: Liquibox intangible amortization (7.5) (5.0) Liquibox inventory step-up expense — (8.4) Restructuring charges (2) (15.5) 1.2 Other restructuring associated costs (6.8) 0.2 Foreign currency exchange loss due to highly inflationary economies (4.9) (2.6) Loss on debt redemption and refinancing activities — (4.9) Contract terminations 0.1 — Charges related to acquisition and divestiture activity (3) 1.9 (16.9) Other Special Items (4) (0.5) (7.5) Pre-tax impact of Special Items (33.2) (43.9) Earnings before income tax provision $ 119.1 $ 96.7 (1) Net of Liquibox intangible amortization, which is included under Special Items. Depreciation and amortization by segment were as follows: Three Months Ended (In millions) 2024 2023 Food $ 46.9 $ 46.7 Protective 21.5 27.2 Total Company depreciation and amortization (i) $ 68.4 $ 73.9 Liquibox intangible amortization (7.5) (5.0) Depreciation and amortization, net of adjustments $ 60.9 $ 68.9 (i) Includes share-based incentive compensation of $8.7 million and $18.0 million for the three months ended March 31, 2024 and 2023, respectively. (2) Restructuring charges by segment were as follows: Three Months Ended (In millions) 2024 2023 Food $ 8.6 $ (0.9) Protective 6.9 (0.3) Total Company restructuring charges $ 15.5 $ (1.2) (3) Charges related to acquisition and divestiture activity for the three months ended March 31, 2024 primarily consists of income recognized on the final purchase price settlement related to the Liquibox acquisition. (4) Other Special Items for the three months ended March 31, 2023 primarily relate to a one-time, non-cash cumulative translation adjustment (CTA) loss recognized due to the wind-up of one of our legal entities. Assets by Reportable Segments The following table shows assets allocated by reportable segment. Assets allocated by reportable segment include: trade receivables, net; inventory, net; property and equipment, net; goodwill; intangible assets, net; and leased systems, net. (In millions) March 31, 2024 December 31, 2023 Assets allocated to segments: Food $ 3,396.6 $ 3,386.4 Protective 2,662.6 2,663.4 Total segments 6,059.2 6,049.8 Assets not allocated: Cash and cash equivalents $ 352.8 $ 346.1 Income tax receivables 27.6 44.9 Other receivables 92.2 94.2 Advances and deposits 69.7 72.8 Deferred taxes 130.7 130.8 Other 467.1 462.0 Total $ 7,199.3 $ 7,200.6 |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following table details our inventories, net. (In millions) March 31, 2024 December 31, 2023 Raw materials $ 162.2 $ 165.3 Work in process 180.1 178.5 Finished goods 447.9 430.5 Total $ 790.2 $ 774.3 |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The following table details our property and equipment, net. (In millions) March 31, 2024 December 31, 2023 Land and improvements $ 46.7 $ 47.5 Buildings 837.8 835.8 Machinery and equipment 2,807.5 2,811.5 Other property and equipment 141.9 142.0 Construction-in-progress 230.0 227.0 Property and equipment, gross 4,063.9 4,063.8 Accumulated depreciation and amortization (2,652.7) (2,647.4) Property and equipment, net $ 1,411.2 $ 1,416.4 The following table details our interest cost capitalized and depreciation and amortization expense for property and equipment and finance lease ROU assets. Three Months Ended (In millions) 2024 2023 Interest cost capitalized $ 3.3 $ 2.5 Depreciation and amortization expense (1) $ 44.8 $ 40.7 (1) Includes amortization expense of finance lease ROU assets of $2.0 million and $2.5 million for the three months ended March 31, 2024 and 2023, respectively. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets, net | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Identifiable Intangible Assets, net | Goodwill and Identifiable Intangible Assets, net Goodwill We review goodwill for impairment on a reporting unit basis annually during the fourth quarter of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Since the date of our last annual goodwill impairment assessment, there have been no significant events or circumstances that have indicated a potential for impairment. Allocation of Goodwill to Reporting Segment The following table shows our goodwill balances by reportable segment: (In millions) Food Protective Total Gross Carrying Value at December 31, 2023 $ 1,284.3 $ 1,798.1 $ 3,082.4 Accumulated amortization (1) (49.1) (140.8) (189.9) Carrying Value at December 31, 2023 $ 1,235.2 $ 1,657.3 $ 2,892.5 Currency translation (0.9) (3.9) (4.8) Carrying Value at March 31, 2024 $ 1,234.3 $ 1,653.4 $ 2,887.7 (1) There was no change to our accumulated amortization balance during the three months ended March 31, 2024. Identifiable Intangible Assets, net The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives. As of March 31, 2024, there were no impairment indicators present. March 31, 2024 December 31, 2023 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 286.5 $ (74.2) $ 212.3 $ 287.7 $ (69.3) $ 218.4 Trademarks and tradenames 57.0 (20.6) 36.4 57.0 (19.4) 37.6 Software 151.2 (117.3) 33.9 148.2 (112.8) 35.4 Technology 196.8 (63.8) 133.0 197.5 (60.1) 137.4 Contracts 11.4 (10.3) 1.1 11.5 (10.2) 1.3 Total intangible assets with definite lives 702.9 (286.2) 416.7 701.9 (271.8) 430.1 Trademarks and tradenames with indefinite lives 8.9 — 8.9 8.9 — 8.9 Total identifiable intangible assets, net $ 711.8 $ (286.2) $ 425.6 $ 710.8 $ (271.8) $ 439.0 The following table shows the remaining estimated future amortization expense at March 31, 2024. Year Amount (In millions) Remainder of 2024 $ 47.8 2025 57.2 2026 46.1 2027 39.7 2028 39.0 Thereafter 186.9 Total $ 416.7 |
Accounts Receivable Securitizat
Accounts Receivable Securitization Programs | 3 Months Ended |
Mar. 31, 2024 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Securitization Programs | Accounts Receivable Securitization Programs U.S. Accounts Receivable Securitization Program We and a group of our U.S. operating subsidiaries maintain an accounts receivable securitization program under which they sell eligible U.S. accounts receivable to a wholly-owned subsidiary that was formed for the sole purpose of entering into this program. The wholly-owned subsidiary in turn may sell an undivided fractional ownership interest in these receivables to two banks and issuers of commercial paper administered by these banks. The wholly-owned subsidiary retains the receivables it purchases from the operating subsidiaries. Any transfers of fractional ownership interests of receivables under the U.S. receivables securitization program to the two banks and issuers of commercial paper administered by these banks are considered secured borrowings with the underlying receivables as collateral and will be classified as Short-term borrowings on our Condensed Consolidated Balance Sheets. These banks do not have any recourse against the general credit of the Company. The net trade receivables that served as collateral for these borrowings are reclassified from Trade receivables, net to Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. There were $50.0 million and $46.5 million of borrowings or corresponding net trade receivables maintained as collateral as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, the maximum purchase limit for receivable interests was $50.0 million, subject to the availability limits described below. The amounts available from time to time under this program may be less than $50.0 million due to a number of factors, including but not limited to our credit ratings, trade receivable balances, the creditworthiness of our customers and our receivables collection experience. As of March 31, 2024, the amount available to us under the program before utilization was $50.0 million. Although we do not believe restrictions under this program presently materially restrict our operations, if an additional event occurs that triggers one of these restrictive provisions, we could experience a decline in the amounts available to us under the program or termination of the program. The program expires annually and is renewable. European Accounts Receivable Securitization Program We and a group of our European subsidiaries maintain an accounts receivable securitization program with a special purpose vehicle, or SPV, two banks, and issuers of commercial paper administered by these banks. The European program is structured to be a securitization of certain trade receivables that are originated by certain of our European subsidiaries. The SPV borrows funds from the banks to fund its acquisition of the receivables and provides the banks with a first priority perfected security interest in the accounts receivable. We do not have an equity interest in the SPV. We concluded the SPV is a variable interest entity because its total equity investment at risk is not sufficient to permit the SPV to finance its activities without additional subordinated financial support from the bank via loans or via the collections from accounts receivable already purchased. Additionally, we are considered the primary beneficiary of the SPV since we control the activities of the SPV and are exposed to the risk of uncollectible receivables held by the SPV. Therefore, the SPV is consolidated in our Condensed Consolidated Financial Statements. Any activity between the participating subsidiaries and the SPV is eliminated in consolidation. Loans from the banks to the SPV will be classified as Short-term borrowings on our Condensed Consolidated Balance Sheets. The net trade receivables that served as collateral for these borrowings are reclassified from Trade receivables, net to Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. There were €75.6 million ($81.5 million equivalent at March 31, 2024) and €78.4 million ($86.7 million equivalent at December 31, 2023) of borrowings or corresponding net trade receivables maintained as collateral as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, the maximum purchase limit for receivable interests was €80.0 million ($86.3 million equivalent at March 31, 2024), subject to availability limits. The terms and provisions of this program are similar to our U.S. program discussed above. As of March 31, 2024, the amount available under this program before utilization was €76.0 million ($82.0 million equivalent as of March 31, 2024). This program expires annually and is renewable. Utilization of Our Accounts Receivable Securitization Programs As of March 31, 2024, there were $50.0 million and €75.6 million ($81.5 million equivalent at March 31, 2024) of outstanding borrowings under our U.S. and European programs, respectively. As of December 31, 2023, there were $46.5 million and €78.4 million ($86.7 million equivalent at December 31, 2023) of outstanding borrowings under our U.S. and European programs, respectively. We continue to service the trade receivables supporting the programs, and the banks are permitted to re-pledge this collateral. The total interest paid for these programs was $1.8 million and $0.9 million for the three months ended March 31, 2024 and 2023, respectively. Under limited circumstances, the banks and the issuers of commercial paper can end purchases of receivables interests before the above expiration dates. A failure to comply with debt leverage or various other ratios related to our receivables collection experience could result in termination of the receivables programs. We were in compliance with these ratios at March 31, 2024. The Company has entered into factoring agreements and customers' supply chain financing arrangements to sell certain trade receivables to unrelated third-party financial institutions. These programs are entered into in the normal course of business. We account for these transactions in accordance with ASC 860, "Transfers and Servicing" ("ASC 860"). ASC 860 allows for the ownership transfer of accounts receivable to qualify for true-sale treatment when the appropriate criteria is met, which permits the balances sold under the program to be excluded from Trade receivables, net on the Condensed Consolidated Balance Sheets. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has no continuing involvement in the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold. Gross amounts factored under this program for the three months ended March 31, 2024 and 2023 were $179.8 million and $194.5 million, respectively. The fees associated with transfer of receivables for all programs were approximately $3.0 million for both of the three months ended March 31, 2024 and 2023. |
Accounts Receivable Factoring A
Accounts Receivable Factoring Agreements | 3 Months Ended |
Mar. 31, 2024 | |
Transfers and Servicing [Abstract] | |
Accounts Receivable Factoring Agreements | Accounts Receivable Securitization Programs U.S. Accounts Receivable Securitization Program We and a group of our U.S. operating subsidiaries maintain an accounts receivable securitization program under which they sell eligible U.S. accounts receivable to a wholly-owned subsidiary that was formed for the sole purpose of entering into this program. The wholly-owned subsidiary in turn may sell an undivided fractional ownership interest in these receivables to two banks and issuers of commercial paper administered by these banks. The wholly-owned subsidiary retains the receivables it purchases from the operating subsidiaries. Any transfers of fractional ownership interests of receivables under the U.S. receivables securitization program to the two banks and issuers of commercial paper administered by these banks are considered secured borrowings with the underlying receivables as collateral and will be classified as Short-term borrowings on our Condensed Consolidated Balance Sheets. These banks do not have any recourse against the general credit of the Company. The net trade receivables that served as collateral for these borrowings are reclassified from Trade receivables, net to Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. There were $50.0 million and $46.5 million of borrowings or corresponding net trade receivables maintained as collateral as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, the maximum purchase limit for receivable interests was $50.0 million, subject to the availability limits described below. The amounts available from time to time under this program may be less than $50.0 million due to a number of factors, including but not limited to our credit ratings, trade receivable balances, the creditworthiness of our customers and our receivables collection experience. As of March 31, 2024, the amount available to us under the program before utilization was $50.0 million. Although we do not believe restrictions under this program presently materially restrict our operations, if an additional event occurs that triggers one of these restrictive provisions, we could experience a decline in the amounts available to us under the program or termination of the program. The program expires annually and is renewable. European Accounts Receivable Securitization Program We and a group of our European subsidiaries maintain an accounts receivable securitization program with a special purpose vehicle, or SPV, two banks, and issuers of commercial paper administered by these banks. The European program is structured to be a securitization of certain trade receivables that are originated by certain of our European subsidiaries. The SPV borrows funds from the banks to fund its acquisition of the receivables and provides the banks with a first priority perfected security interest in the accounts receivable. We do not have an equity interest in the SPV. We concluded the SPV is a variable interest entity because its total equity investment at risk is not sufficient to permit the SPV to finance its activities without additional subordinated financial support from the bank via loans or via the collections from accounts receivable already purchased. Additionally, we are considered the primary beneficiary of the SPV since we control the activities of the SPV and are exposed to the risk of uncollectible receivables held by the SPV. Therefore, the SPV is consolidated in our Condensed Consolidated Financial Statements. Any activity between the participating subsidiaries and the SPV is eliminated in consolidation. Loans from the banks to the SPV will be classified as Short-term borrowings on our Condensed Consolidated Balance Sheets. The net trade receivables that served as collateral for these borrowings are reclassified from Trade receivables, net to Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. There were €75.6 million ($81.5 million equivalent at March 31, 2024) and €78.4 million ($86.7 million equivalent at December 31, 2023) of borrowings or corresponding net trade receivables maintained as collateral as of March 31, 2024 and December 31, 2023, respectively. As of March 31, 2024, the maximum purchase limit for receivable interests was €80.0 million ($86.3 million equivalent at March 31, 2024), subject to availability limits. The terms and provisions of this program are similar to our U.S. program discussed above. As of March 31, 2024, the amount available under this program before utilization was €76.0 million ($82.0 million equivalent as of March 31, 2024). This program expires annually and is renewable. Utilization of Our Accounts Receivable Securitization Programs As of March 31, 2024, there were $50.0 million and €75.6 million ($81.5 million equivalent at March 31, 2024) of outstanding borrowings under our U.S. and European programs, respectively. As of December 31, 2023, there were $46.5 million and €78.4 million ($86.7 million equivalent at December 31, 2023) of outstanding borrowings under our U.S. and European programs, respectively. We continue to service the trade receivables supporting the programs, and the banks are permitted to re-pledge this collateral. The total interest paid for these programs was $1.8 million and $0.9 million for the three months ended March 31, 2024 and 2023, respectively. Under limited circumstances, the banks and the issuers of commercial paper can end purchases of receivables interests before the above expiration dates. A failure to comply with debt leverage or various other ratios related to our receivables collection experience could result in termination of the receivables programs. We were in compliance with these ratios at March 31, 2024. The Company has entered into factoring agreements and customers' supply chain financing arrangements to sell certain trade receivables to unrelated third-party financial institutions. These programs are entered into in the normal course of business. We account for these transactions in accordance with ASC 860, "Transfers and Servicing" ("ASC 860"). ASC 860 allows for the ownership transfer of accounts receivable to qualify for true-sale treatment when the appropriate criteria is met, which permits the balances sold under the program to be excluded from Trade receivables, net on the Condensed Consolidated Balance Sheets. Receivables are considered sold when (i) they are transferred beyond the reach of the Company and its creditors, (ii) the purchaser has the right to pledge or exchange the receivables, and (iii) the Company has no continuing involvement in the transferred receivables. In addition, the Company provides no other forms of continued financial support to the purchaser of the receivables once the receivables are sold. Gross amounts factored under this program for the three months ended March 31, 2024 and 2023 were $179.8 million and $194.5 million, respectively. The fees associated with transfer of receivables for all programs were approximately $3.0 million for both of the three months ended March 31, 2024 and 2023. |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | Restructuring Activities On August 7, 2023, the Board of Directors approved a new 3-year cost take-out to grow program (the “CTO2Grow Program”). The total cash cost of this program is estimated to be in the range of $140 to $160 million. For the three months ended March 31, 2024, the Company incurred cash expense including $15.3 million of restructuring charges related to headcount reductions, $6.7 million of other associated costs and recorded income of $0.1 million related to contract terminations in connection with the CTO2Grow Program. CTO2Grow Program restructuring spend is estimated to be incurred as follows: Total Restructuring Program Range Less Program Activity to Date Remaining Restructuring (In millions) Low High Low High Costs of reduction in headcount as a result of reorganization $ 90 $ 95 $ (32) $ 58 $ 63 Other associated costs 20 25 (8) 12 17 Contract terminations 25 30 (15) 10 15 Total cash expense 135 150 (55) 80 95 Capital expenditures 5 10 — 5 10 Total estimated cash cost (1) $ 140 $ 160 $ (55) $ 85 $ 105 Total estimated non-cash expense (2) $ 33 $ 33 $ (33) $ — $ — Total estimated expense (3) $ 168 $ 183 $ (88) $ 80 $ 95 (1) Total estimated cash cost excludes the impact of proceeds expected from the sale of property and equipment and foreign currency impact. (2) Reflects actual expenses that have been incurred. Ranges associated with future non-cash expenses related to the CTO2Grow Program are difficult to estimate and are not available without unreasonable efforts, as these typically relate to exit and disposal activities. (3) Total estimated expense excludes capital expenditures. The following table details our aggregate restructuring activities as reflected in the Condensed Consolidated Statements of Operations. Three Months Ended (In millions) 2024 2023 Other associated costs $ 6.8 $ (0.2) Contract terminations (0.1) — Restructuring charges 15.5 (1.2) Total charges $ 22.2 $ (1.4) Capital expenditures $ — $ — The aggregate restructuring accrual, spending and other activity for the three months ended March 31, 2024 and the accrual balance remaining at March 31, 2024 was as follows: (In millions) Restructuring accrual at December 31, 2023 $ 24.3 Headcount accrual and accrual adjustments 15.5 Cash payments during 2024 (9.8) Effect of changes in foreign currency exchange rates (0.3) Restructuring accrual at March 31, 2024 (1) $ 29.7 (1) Excludes $3.6 million of remaining lease obligations on terminated contracts included in Current portion of operating lease liabilities and Long-term operating lease liabilities, less current portion on our Condensed Consolidated Balance Sheets. We expect to pay $28.8 million of the accrual balance as of March 31, 2024 within the next twelve months. The remaining accrual of $0.9 million is expected to be paid primarily in 2025. These amounts are included in Accrued restructuring costs and Other non-current liabilities, respectively, on our Condensed Consolidated Balance Sheets at March 31, 2024. The CTO2Grow Program was approved by our Board of Directors as a consolidated program benefiting both Food and Protective, and accordingly the expected program spend by reporting segment is not available. However, of the total restructuring accrual of $29.7 million as of March 31, 2024, $18.1 million was attributable to Food and $11.6 million was attributable to Protective. |
Debt and Credit Facilities
Debt and Credit Facilities | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Our total debt outstanding consisted of the amounts set forth in the following table: (In millions) Interest rate March 31, 2024 December 31, 2023 Short-term borrowings (1) $ 134.6 $ 140.7 Current portion of long-term debt (2) 43.5 35.7 Total current debt 178.1 176.4 Term Loan A due March 2027 989.3 1,021.1 Senior Notes due September 2025 5.500 % 399.3 399.1 Senior Secured Notes due October 2026 1.573 % 597.3 597.0 Senior Notes due December 2027 4.000 % 422.7 422.5 Senior Notes due February 2028 6.125 % 765.3 764.8 Senior Notes due April 2029 5.000 % 421.8 421.7 Senior Notes due February 2031 7.250 % 421.0 420.9 Senior Notes due July 2033 6.875 % 446.7 446.7 Other (2) 20.8 20.1 Total long-term debt, less current portion (3) 4,484.2 4,513.9 Total debt (4) $ 4,662.3 $ 4,690.3 (1) Short-term borrowings of $134.6 million at March 31, 2024, were comprised of $81.5 million under our European securitization program, $50.0 million under our U.S. securitization program, and $3.1 million of short-term borrowings from various lines of credit. Short-term borrowings of $140.7 million at December 31, 2023, were comprised of $86.7 million under our European securitization program, $46.5 million under our U.S. securitization program, and $7.5 million of short-term borrowings from various lines of credit. (2) Current portion of long-term debt included finance lease liabilities of $7.1 million and $6.7 million at March 31, 2024 and December 31, 2023, respectively. Other debt includes long-term liabilities associated with our finance leases of $13.8 million and $12.8 million at March 31, 2024 and December 31, 2023, respectively. See Note 4, "Leases," for additional information on finance and operating lease liabilities. (3) Amounts are shown net of unamortized discounts and issuance costs of $34.7 million as of March 31, 2024 and $36.9 million as of December 31, 2023. (4) As of March 31, 2024, our weighted average interest rate on our short-term borrowings outstanding was 5.4% and on our long-term debt outstanding was 5.6%. As of December 31, 2023, our weighted average interest rate on our short-term borrowings outstanding was 5.3% and on our long-term debt outstanding was 5.6%. Lines of Credit The following table summarizes our available lines of credit and committed and uncommitted lines of credit, including our revolving credit facility, and the amounts available under our accounts receivable securitization programs. (In millions) March 31, 2024 December 31, 2023 Used lines of credit (1) $ 134.6 $ 140.7 Unused lines of credit 1,134.9 1,134.7 Total available lines of credit (2) $ 1,269.5 $ 1,275.4 (1) Includes total borrowings under the accounts receivable securitization programs, the revolving credit facility and borrowings under lines of credit available to several subsidiaries. (2) Of the total available lines of credit, $1,132.0 million was committed as of March 31, 2024. Amended and Restated Senior Secured Credit Facility 2023 Activity On February 1, 2023, the Company used proceeds from the incremental term facility under the senior secured credit facilities to finance in part the Liquibox acquisition. We incurred $11.0 million of lender and third party fees included in carrying amounts of outstanding debt. See Note 5, "Acquisitions," for further details related to the Liquibox acquisition. Senior Notes 2023 Activity On November 20, 2023, the Company issued $425.0 million aggregate principal amount of 7.250% senior notes due 2031 (the “2031 Notes”). The 2031 Notes will mature on February 15, 2031. Interest is payable on May 15 and November 15 of each year, commencing on May 15, 2024. The 2031 Notes are guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly-owned domestic subsidiaries that guarantee its senior secured credit facilities, subject to release under certain circumstances. We capitalized $4.2 million of fees incurred in connection with the 2031 Notes, which are included in Long-term debt, less current portion on our Condensed Consolidated Balance Sheets. We may redeem the 2031 Notes, in whole or in part, at any time prior to November 15, 2026, at a redemption price equal to 100% of the principal amount of the 2031 Notes redeemed plus accrued and unpaid interest to, but not including, the redemption date, plus a “make-whole premium”. At any time prior to November 15, 2026, we may redeem up to 40% of the aggregate principal amount of the 2031 Notes with the net cash proceeds of certain equity offerings. The net proceeds from the 2031 Notes offering were used (i) to repurchase all of the Company’s outstanding 5.125% senior notes due 2024 (the "2024 Notes") pursuant to the tender offer commenced by the Company on November 8, 2023 and satisfy and discharge all of the Company's outstanding 2024 Notes in accordance with the terms of the indenture governing the 2024 Notes and to pay related premiums, fees and expenses in connection therewith, and (ii) to the extent of any remaining proceeds after giving effect to the foregoing transaction, for general corporate purposes. The aggregate repurchase price was $433.7 million, which included the principal amount of $425.0 million, a premium of $7.5 million and accrued interest of $1.2 million. We recognized a pre-tax loss of $8.3 million on the extinguishment, including the premium mentioned above and $0.8 million of accelerated amortization of non-lender fees, included within Other expense, net on our Consolidated Statements of Operations during the year ended December 31, 2023. On January 31, 2023, the Company issued $775.0 million aggregate principal amount of 6.125% senior notes due 2028 (the "2028 Notes"). The 2028 Notes will mature on February 1, 2028. Interest is payable on February 1 and August 1 of each year, commencing on August 1, 2023. The 2028 Notes are guaranteed on a senior unsecured basis by each of the Company’s existing and future wholly-owned domestic subsidiaries that guarantee its senior secured credit facilities, subject to release under certain circumstances. We capitalized $12.2 million of fees incurred in connection with the 2028 Notes, which are included in Long-term debt, less current portion on our Condensed Consolidated Balance Sheets. We may redeem the 2028 Notes, in whole or in part, at any time prior to February 1, 2025, at a redemption price equal to 100% of the principal amount of the 2028 Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date, plus a "make-whole premium". On or after February 1, 2025, we may redeem the 2028 Notes, in whole or in part, at specified redemption prices, plus accrued and unpaid interest, if any, to, but not including the redemption date. In addition, at any time prior to February 1, 2025, we may redeem up to 40% of the 2028 Notes using the proceeds of certain equity offerings. The net proceeds from the 2028 Notes offering were used (i) together with a borrowing under the Company’s incremental term loan facility and cash on hand, to finance the acquisition of all of the issued and outstanding shares of capital stock of Liquibox, including related fees and expenses, (ii) to repurchase all of the Company’s outstanding 4.500% senior notes due 2023 (the “2023 Euro Notes”) pursuant to the tender offer commenced by the Company on January 27, 2023 and satisfy and discharge all of the Company’s outstanding 2023 Euro Notes in accordance with the terms of the indenture governing the 2023 Euro Notes and to pay related premiums, fees and expenses in connection therewith and (iii) to the extent of any remaining proceeds after giving effect to the foregoing transactions, for general corporate purposes. We recognized a pre-tax loss of $4.9 million on the repurchase and cancellation of the 2023 Euro Notes, including a premium of $4.5 million and accelerated amortization of non-lender fees of $0.4 million, within Other expense, net on our Condensed Consolidated Statements of Operations during the first quarter of 2023. See Note 5, "Acquisitions," for further details related to the Liquibox acquisition. Covenants Each issue of our outstanding senior notes imposes limitations on our operations and those of specified subsidiaries. Our senior secured credit facilities contain customary affirmative and negative covenants for credit facilities of this type, including limitations on our indebtedness, liens, investments, restricted payments, mergers and acquisitions, dispositions of assets, transactions with affiliates, amendment of documents and sale leasebacks, and a covenant specifying a maximum leverage ratio to EBITDA. We were in compliance with the above financial covenants and limitations at March 31, 2024. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities We report all derivative instruments on our Condensed Consolidated Balance Sheets at fair value and establish criteria for designation and effectiveness of transactions entered into for hedging purposes. As a global organization, we face exposure to market risks, such as fluctuations in foreign currency exchange rates and interest rates. To manage the volatility relating to these exposures, we enter into various derivative instruments from time to time under our risk management policies. We designate derivative instruments as hedges on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments offset, in part or in whole, corresponding changes in the fair value or cash flows of the underlying exposures being hedged. We assess the initial and ongoing effectiveness of our hedging relationships in accordance with our policy. We do not purchase, hold or sell derivative financial instruments for trading purposes. Our practice is to terminate derivative transactions if the underlying asset or liability matures or is sold or terminated, or if we determine the underlying forecasted transaction is no longer probable of occurring. We record the fair value positions of all derivative financial instruments on a net basis by counterparty for which a master netting arrangement is utilized. Foreign Currency Forward Contracts Designated as Cash Flow Hedges The primary purpose of our cash flow hedging activities is to manage the potential changes in value associated with the amounts receivable or payable on equipment and raw material purchases that are denominated in foreign currencies in order to minimize the impact of the changes in foreign currencies. We record gains and losses on foreign currency forward contracts qualifying as cash flow hedges in Accumulated Other Comprehensive Loss (“AOCL”) to the extent that these hedges are effective and until we recognize the underlying transactions in net earnings, at which time we recognize these gains and losses in Cost of sales, on our Condensed Consolidated Statements of Operations. Cash flows from derivative financial instruments designated as cash flow hedges are classified as Cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows. These contracts generally have original maturities of less than 12 months. Net unrealized after-tax gains/losses related to cash flow hedging activities that were included in AOCL were a $1.4 million gain and a $1.1 million gain for the three months ended March 31, 2024 and 2023, respectively. The unrealized amount in AOCL will fluctuate based on changes in the fair value of open contracts during each reporting period. We estimate that $0.2 million of net unrealized gains related to cash flow hedging activities included in AOCL will be reclassified into earnings within the next twelve months. Foreign Currency Forward Contracts Not Designated as Hedges Our subsidiaries have foreign currency exchange exposure from buying and selling in currencies other than their functional currencies. The primary purposes of our foreign currency hedging activities are to manage the potential changes in value associated with the amounts receivable or payable on transactions denominated in foreign currencies and to minimize the impact of the changes in foreign currencies related to foreign currency-denominated, interest-bearing intercompany loans and receivables and payables. The changes in fair value of these derivative contracts are recognized in Other expense, net, on our Condensed Consolidated Statements of Operations and are largely offset by the remeasurement of the underlying foreign currency-denominated items indicated above. Cash flows from derivative financial instruments not designated as hedges are classified as Cash flows from investing activities in the Condensed Consolidated Statements of Cash Flows. These contracts generally have original maturities of less than 12 months. Interest Rate Swaps From time to time, we may use interest rate swaps to manage our fixed and floating interest rates on our outstanding indebtedness. At March 31, 2024 and December 31, 2023, we had no outstanding interest rate swaps. Net Investment Hedge In February 2023, the €400.0 million 4.500% senior notes issued in June 2015 that were previously designated as a net investment hedge, hedging a portion of our net investment in a certain European subsidiary against fluctuations in foreign exchange rates, were repaid, which settled the net investment hedge. See Note 13, "Debt and Credit Facilities," for additional information about the repayment of the notes. In the first quarter of 2023, we entered into a series of cross-currency swaps with a combined notional amount of $432.8 million. Each of these cross-currency swaps were designated as net investment hedges of the Company's foreign currency exposure of its net investment in certain Euro-functional currency subsidiaries with Euro-denominated net assets, and the Company pays a fixed rate of Euro-based interest and receives a fixed rate of U.S. dollar interest. The Company has elected the spot method for assessing the effectiveness of these contracts. The maturity date for this series of cross-currency swaps is February 1, 2028. We recognized $0.8 million and $0.5 million of interest income within Interest expense, net on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023, respectively, related to these contracts. For derivative instruments that are designated and qualify as hedges of net investments in foreign operations, changes in fair values of the derivative instruments are recognized in Unrealized gain or loss on derivative instruments for net investment hedge, a component of AOCL, net of taxes, to offset the changes in the values of the net investments being hedged. Any portion of the net investment hedge that is determined to be ineffective is recorded in Other expense, net on the Condensed Consolidated Statements of Operations. Other Derivative Instruments We may use other derivative instruments from time to time to manage exposure to foreign exchange rates and to access international financing transactions. These instruments can potentially limit foreign exchange exposure by swapping borrowings denominated in one currency for borrowings denominated in another currency. Fair Value of Derivative Instruments See Note 15, “Fair Value Measurements, Equity Investments and Other Financial Instruments,” for a discussion of the inputs and valuation techniques used to determine the fair value of our outstanding derivative instruments. The following table details the fair value of our derivative instruments included on our Condensed Consolidated Balance Sheets. Cash Flow Hedge Net Investment Hedge Non-Designated as Hedging Instruments Total (In millions) March 31, 2024 December 31, 2023 March 31, December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Derivative Assets Foreign currency forward contracts $ 1.0 $ 0.2 $ — $ — $ 5.0 $ 4.9 $ 6.0 $ 5.1 Total Derivative Assets $ 1.0 $ 0.2 $ — $ — $ 5.0 $ 4.9 $ 6.0 $ 5.1 Derivative Liabilities Foreign currency forward contracts $ (0.5) $ (2.7) $ — $ — $ (1.1) $ (1.6) $ (1.6) $ (4.3) Cross-currency swaps — — (8.8) (19.9) — — (8.8) (19.9) Total Derivative Liabilities $ (0.5) $ (2.7) $ (8.8) $ (19.9) $ (1.1) $ (1.6) $ (10.4) $ (24.2) Net Derivatives (1) $ 0.5 $ (2.5) $ (8.8) $ (19.9) $ 3.9 $ 3.3 $ (4.4) $ (19.1) (1) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities Other Non-current Liabilities (In millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Gross position $ 6.0 $ 5.1 $ (1.6) $ (4.3) $ (8.8) $ (19.9) Impact of master netting agreements (0.9) (1.1) 0.9 1.1 — — Net amounts recognized on the Condensed Consolidated Balance Sheets $ 5.1 $ 4.0 $ (0.7) $ (3.2) $ (8.8) $ (19.9) The following table details the effect of our derivative instruments on our Condensed Consolidated Statements of Operations. Amount of (Loss) Gain Recognized in Location of (Loss) Gain Recognized on Three Months Ended (In millions) Condensed Consolidated Statements of Operations 2024 2023 Derivatives designated as hedging instruments: Cash Flow Hedges: Foreign currency forward contracts Cost of sales $ (0.2) $ 1.1 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other expense, net 3.7 3.3 Total $ 3.5 $ 4.4 |
Fair Value Measurements, Equity
Fair Value Measurements, Equity Investments and Other Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Equity Investments and Other Financial Instruments | Fair Value Measurements, Equity Investments and Other Financial Instruments Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There are three levels to the fair value hierarchy as follows: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets; Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly; and Level 3 - unobservable inputs for which there is little or no market data, which may require the reporting entity to develop its own assumptions. The fair value, measured on a recurring basis, of our financial instruments, using the fair value hierarchy under U.S. GAAP, are included in the table below. March 31, 2024 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 46.4 $ 46.4 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ 4.4 $ — $ 4.4 $ — Cross-currency swaps $ (8.8) $ — $ (8.8) $ — December 31, 2023 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 40.2 $ 40.2 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ 0.8 $ — $ 0.8 $ — Cross-currency swaps $ (19.9) $ — $ (19.9) $ — Cash equivalents - Our cash equivalents consisted of bank time deposits. Since these are short-term, highly liquid investments with remaining maturities of 3 months or less, they present negligible risk of changes in fair value due to changes in interest rates and are classified as Level 1 financial instruments. Derivative financial instruments - Our foreign currency forward contracts, foreign currency options, interest rate swaps and cross-currency swaps are recorded at fair value on our Condensed Consolidated Balance Sheets using a discounted cash flow analysis that incorporates observable market inputs. These market inputs include foreign currency spot and forward rates, and various interest rate curves, and are obtained from pricing data quoted by various banks, third-party sources and foreign currency dealers involving identical or comparable instruments. Such financial instruments are classified as Level 2. Counterparties to these foreign currency forward contracts have at least an investment grade rating. Credit ratings on some of our counterparties may change during the term of our financial instruments. We closely monitor our counterparties’ credit ratings and, if necessary, will make any appropriate changes to our financial instruments. The fair value generally reflects the estimated amounts that we would receive or pay to terminate the contracts at the reporting date. Foreign currency forward contracts are included in Prepaid expenses and other current assets and Other current liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. Cross-currency swaps are included in Other non-current liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023. Equity Investments SEE maintains equity investments in companies which are accounted for under the measurement alternative described in ASC 321-10-35-2 ("ASC 321") for equity investments that do not have readily determinable fair values. We do not exercise significant influence over these companies. The following carrying value of these investments were included within Other non-current assets in our Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: (In millions) March 31, 2024 December 31, 2023 Carrying value at the beginning of period $ 13.8 $ 13.3 Purchases — — Impairments or downward adjustments — — Upward adjustments — — Currency translation on investments (0.3) 0.5 Carrying value at the end of period $ 13.5 $ 13.8 As of March 31, 2024 and December 31, 2023, cumulative upward adjustments to our equity investments were $21.7 million and cumulative impairments or downward adjustments were $31.6 million. Other Financial Instruments The following financial instruments are recorded at fair value or at amounts that approximate fair value: (1) trade receivables, net, (2) certain other current assets, (3) accounts payable and (4) other current liabilities. The carrying amounts reported on our Condensed Consolidated Balance Sheets for the above financial instruments closely approximate their fair value due to the short-term nature of these assets and liabilities. Other liabilities that are recorded at carrying value on our Condensed Consolidated Balance Sheets include our credit facilities and senior notes. We utilize a market approach to calculate the fair value of our senior notes. Due to their limited investor base and the face value of some of our senior notes, they may not be actively traded on the date we calculate their fair value. Therefore, we may utilize prices and other relevant information generated by market transactions involving similar securities, reflecting U.S. Treasury yields to calculate the yield to maturity and the price on some of our senior notes. These inputs are provided by an independent third party and are considered to be Level 2 inputs. We derive our fair value estimates of our various other debt instruments by evaluating the nature and terms of each instrument, considering prevailing economic and market conditions, and examining the cost of similar debt offered at the balance sheet date. We also incorporated our credit default swap rates and currency specific swap rates in the valuation of each debt instrument, as applicable. These estimates are subjective and involve uncertainties and matters of significant judgment, and therefore we cannot determine them with precision. Changes in assumptions could significantly affect our estimates. The table below shows the carrying amounts and estimated fair values of our debt, excluding our lease liabilities. March 31, 2024 December 31, 2023 (In millions) Interest rate Carrying Amount Fair Value Carrying Amount Fair Value Term Loan A due March 2027 (1) $ 1,025.7 $ 1,025.7 $ 1,050.1 $ 1,050.1 Senior Notes due September 2025 5.500 % 399.3 398.6 399.1 400.7 Senior Secured Notes due October 2026 1.573 % 597.3 541.7 597.0 539.5 Senior Notes due December 2027 4.000 % 422.7 397.9 422.5 399.4 Senior Notes due February 2028 6.125 % 765.3 775.7 764.8 780.8 Senior Notes due April 2029 5.000 % 421.8 407.4 421.7 410.8 Senior Notes due February 2031 7.250 % 421.0 441.9 420.9 450.3 Senior Notes due July 2033 6.875 % 446.7 468.5 446.7 477.0 Other foreign borrowings (1) 84.6 84.6 94.1 94.1 Other domestic borrowings 57.1 57.1 65.9 65.0 Total debt (2) $ 4,641.5 $ 4,599.1 $ 4,682.8 $ 4,667.7 (1) Includes borrowings denominated in currencies other than U.S. dollars. (2) The carrying amount and estimated fair value of debt exclude lease liabilities. Included among our non-financial assets and liabilities that are not required to be measured at fair value on a recurring basis are inventories, property and equipment, goodwill, intangible assets and asset retirement obligations. |
Defined Benefit Pension Plans a
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans | Defined Benefit Pension Plans and Other Post-Employment Benefit Plans The following tables show the components of net benefit cost for our defined benefit pension plans for the three months ended March 31, 2024 and 2023: Three Months Ended Three Months Ended (In millions) U.S. International Total U.S. International Total Components of net periodic benefit cost: Service cost $ — $ 0.9 $ 0.9 $ — $ 0.8 $ 0.8 Interest cost 1.6 5.1 6.7 1.8 5.2 7.0 Expected return on plan assets (1.7) (5.8) (7.5) (1.8) (5.3) (7.1) Amortization of net prior service cost — 0.1 0.1 — 0.1 0.1 Amortization of net actuarial loss 0.4 1.0 1.4 0.4 0.8 1.2 Net periodic benefit cost 0.3 1.3 1.6 0.4 1.6 2.0 Settlement cost — — — — 0.2 0.2 Total benefit cost $ 0.3 $ 1.3 $ 1.6 $ 0.4 $ 1.8 $ 2.2 The following table shows the components of net periodic benefit cost for our other post-employment benefit plans for the three months ended March 31, 2024 and 2023: Three Months Ended (In millions) 2024 2023 Components of net periodic benefit cost: Interest cost $ 0.4 $ 0.4 Amortization of net prior service credit and net actuarial gain (0.1) (0.1) Net periodic benefit cost $ 0.3 $ 0.3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes U.S. Legislation The Inflation Reduction Act ("IRA") was signed into law on August 16, 2022. The IRA includes climate and energy provisions and introduces a 15% corporate alternative minimum tax, among other items. The enactment of the IRA did not result in any adjustments to our income tax provision for the three months ended March 31, 2024. Effective Income Tax Rate and Income Tax Provision For interim tax reporting, we estimate one annual effective tax rate for tax jurisdictions not subject to a valuation allowance and apply that rate to the year-to-date ordinary income/(loss). Tax effects of significant unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Compared to the U.S. statutory rate of 21.0%, state income taxes, foreign earnings subject to higher tax rates and non-deductible expenses increase the Company's effective income tax rate, whereas research and development credits decrease the Company's effective tax rate. Our effective income tax rate was 30.0% for the three months ended March 31, 2024. In addition to the above referenced items, the three-month period was unfavorably impacted by accruals for uncertain tax positions. Our effective income tax rate was 35.0% for the three months ended March 31, 2023. In addition to the above referenced items, the three-month period was unfavorably impacted by accruals for uncertain tax positions. There was no significant change in our valuation allowance for the three months ended March 31, 2024 and 2023. Net increases in unrecognized tax positions of $4.6 million and $6.8 million for the three months ended March 31, 2024 and 2023, respectively, were primarily related to interest accruals on existing uncertain tax positions. We are not currently able to reasonably estimate the amount by which the liability for unrecognized tax positions may increase or decrease as a result of future tax controversy developments or resolution. Interest and penalties on tax assessments are included in Income tax provision on our Condensed Consolidated Statements of Operations. The Organization for Economic Co-operation and Development has issued Pillar Two model rules introducing a new global minimum tax of 15% as of January 1, 2024. While the U.S. has not adopted the Pillar Two rules, various other governments around the world have enacted legislation. This minimum tax is treated as a period cost and did not have a material impact on the Company's financial results of operations for the three months ended March 31, 2024. The Company is monitoring legislative developments, as well as additional guidance from countries that have enacted legislation, and we anticipate further legislative activity and administrative guidance in 2024. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters We are subject to loss contingencies resulting from environmental laws and regulations, and we accrue for anticipated costs associated with investigatory and remediation efforts when an assessment has indicated that a loss is probable and can be reasonably estimated. These accruals are not reduced by potential insurance recoveries, if any. We do not believe that it is reasonably possible that our liability in excess of the amounts that we have accrued for environmental matters will be material to our Condensed Consolidated Balance Sheets or Statements of Operations. Environmental liabilities are reassessed whenever circumstances become better defined or remediation efforts and their costs can be better estimated. We evaluate these liabilities periodically based on available information, including the progress of remedial investigations at each site, the current status of discussions with regulatory authorities regarding the methods and extent of remediation and the apportionment of costs among potentially responsible parties. As some of these issues are decided (the outcomes of which are subject to uncertainties) or new sites are assessed and costs can be reasonably estimated, we adjust the recorded accruals, as necessary. We believe that these exposures are not material to our Condensed Consolidated Balance Sheets or Statements of Operations. We believe that we have adequately reserved for all probable and estimable environmental exposures. Guarantees and Indemnification Obligations We are a party to many contracts containing guarantees and indemnification obligations. These contracts primarily consist of: • indemnities in connection with the sale of businesses, primarily related to the sale of Diversey in 2017. Our indemnity obligations under the relevant agreements may be limited in terms of time, amount or scope. As it relates to certain income tax related liabilities, the relevant agreements may not provide any cap for such liabilities, and the period in which we would be liable would lapse upon expiration of the statute of limitation for assessment of the underlying taxes. Because of the conditional nature of these obligations and the unique facts and circumstances involved in each particular agreement, we are unable to reasonably estimate the potential maximum exposure associated with these items; • product warranties with respect to certain products sold to customers in the ordinary course of business. These warranties typically provide that products will conform to specifications. We generally do not establish a liability for product warranty based on a percentage of sales or other formula. We accrue a warranty liability on a transaction-specific basis depending on the individual facts and circumstances related to each sale. Both the liability and annual expense related to product warranties are immaterial to our consolidated financial position and results of operations; and • licenses of intellectual property by us to third parties in which we have agreed to indemnify the licensee against third-party infringement claims. As of March 31, 2024, the Company has no reason to believe a loss exceeding amounts already recognized would be incurred. Other Matters We are also involved in various other legal actions incidental to our business. We believe, after consulting with counsel, that the disposition of these other legal proceedings and matters will not have a material effect on our consolidated financial condition or results of operations including potential impact to cash flows. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Repurchase of Common Stock On August 2, 2021, the Board of Directors approved a new share repurchase program of $1.0 billion. This current program has no expiration date and replaced all previous authorizations. It does not obligate us to repurchase any specified amount of shares and remains subject to the discretion of the Board of Directors. As of March 31, 2024, there was $536.5 million remaining under the current authorized program. Share repurchases made prior to August 2, 2021 were under the previous share repurchase authorization of $1.0 billion, which was approved by the Board of Directors in May 2018. During the three months ended March 31, 2024, no shares were repurchased. During the three months ended March 31, 2023, we repurchased 1,529,575 shares, for approximately $79.8 million, at an average share price of $52.20. These repurchases were made under open market transactions, including through plans complying with Rule 10b5-1 of the Exchange Act, and pursuant to the share repurchase program previously authorized by our Board of Directors. Dividends On February 21, 2024, our Board of Directors declared a quarterly cash dividend of $0.20 per common share, or $29.1 million, which was paid on March 22, 2024, to stockholders of record at the close of business on March 8, 2024. The dividends paid during the three months ended March 31, 2024 were recorded as a reduction to Cash and cash equivalents with an offset to Retained earnings on our Condensed Consolidated Balance Sheets. Our senior secured credit facility and our senior notes contain covenants that restrict our ability to declare or pay dividends and repurchase stock. However, we do not believe these covenants are likely to materially limit the future payment of quarterly cash dividends on our common stock. From time to time, we may consider other means of returning value to our stockholders based on our consolidated financial condition and results of operations. There is no guarantee that our Board of Directors will declare any future dividends. Share-based Compensation In 2014, the Board of Directors adopted, and our stockholders approved, the 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”). Under the Omnibus Incentive Plan, the maximum number of shares of Common Stock authorized was 4,250,000, plus total shares available to be issued as of May 22, 2014 under the 2002 Directors Stock Plan and the 2005 Contingent Stock Plan (collectively, the “Predecessor Plans”). The Omnibus Incentive Plan replaced the Predecessor Plans and no further awards were granted under the Predecessor Plans. The Omnibus Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, performance share units known as PSU awards, other stock awards and cash awards to officers, non-employee directors, key employees, consultants and advisors. In 2018 and 2021, the Board of Directors adopted, and our shareholders approved, amendments and restatements to the Omnibus Incentive Plan, adding 2,199,114 and 2,999,054 shares of common stock to the share pool previously available under the Omnibus Incentive Plan, respectively. We record share-based incentive compensation expense in Selling, general and administrative expenses and Cost of sales on our Condensed Consolidated Statements of Operations for both equity-classified and liability-classified awards. We record a corresponding credit to Additional paid-in capital within Stockholders’ equity for equity-classified awards, and to either Other current liabilities or Other non-current liabilities for liability-classified awards based on the fair value of the share-based incentive compensation awards at the date of grant. Total expense for the liability-classified awards continues to be remeasured to fair value at the end of each reporting period. We recognize an expense or credit reflecting the straight-line recognition, net of estimated forfeitures, of the expected cost of the awards. The number of PSUs earned may equal, exceed, or be less than the targeted number of shares depending on whether the performance criteria are met, surpassed, or not met. The table below shows our total share-based incentive compensation expense: Three Months Ended (In millions) 2024 2023 Total share-based incentive compensation expense (1) $ 8.7 $ 18.0 (1) The amounts presented above do not include the expense related to our U.S. profit sharing contributions made in the form of our common stock. However, the amounts include the expense related to share-based awards that are settled in cash. Performance Share Units (“PSU”) Awards During the first 90 days of each year, the People and Compensation Committee (formerly the Organization and Compensation Committee, or "P&C Committee") of our Board of Directors approves PSU awards for our executive officers and other selected employees, which include for each participant a target number of shares of common stock and the performance goals and measures that will determine the percentage of the target award that is earned. Following the end of the performance period, in addition to shares earned, participants will also receive a cash payment in the amount of the dividends (without interest) that would have been paid during the performance period on the number of shares that they have earned. Each PSU is subject to forfeiture if the recipient terminates employment with the Company prior to the end of the award performance period for any reason other than death, disability or retirement. In the event of death, disability or retirement, a participant will receive a prorated payment based on such participant’s number of days of service during the award performance period, further adjusted based on the achievement of the performance goals during the award performance period. PSUs are classified as equity in the Condensed Consolidated Balance Sheets, with the exception of awards that are required by local laws or regulations to be settled in cash. These are classified as either Other current liabilities or Other non-current liabilities in the Condensed Consolidated Balance Sheets. 2024 Three-year PSU Awards During the first quarter of 2024, the P&C Committee approved awards with a three-year performance period beginning January 1, 2024 and ending December 31, 2026 for executive officers and other selected employees. The P&C Committee established performance goals, which are (i) three-year cumulative average growth rate (“CAGR”) of consolidated Adjusted EBITDA weighted at 50%, and (ii) Return on Invested Capital (“ROIC”) weighted at 50%. Calculation of final achievement on each performance metric is subject to an upward or downward adjustment of up to 25% of the overall combined achievement percentage, based on the results of a relative total shareholder return (“TSR”) modifier. The comparator group for the relative TSR modifier is comprised of a custom peer group as of the beginning of the performance period. Shareholder return in the top quartile of the comparator group increases overall achievement of performance metrics by 25%, while shareholder return in the bottom quartile of the comparator group decreases overall achievement of the performance metrics by 25%. The total number of shares to be issued for these awards, including the modifier, can range from zero to 250% of the target number of shares. The target number of PSUs granted and the grant date fair value of the PSUs are shown in the following table: Adjusted EBITDA CAGR ROIC February 21, 2024 grant date Number of units granted 50,340 50,340 Fair value on grant date (per unit) $ 41.09 $ 41.09 March 1, 2024 grant date Number of units granted 22,692 22,692 Fair value on grant date (per unit) $ 39.49 $ 39.49 The assumptions used to calculate the grant date fair value of the PSUs are shown in the following table: February 21, 2024 March 1, 2024 Expected price volatility 31.7 % 31.9 % Risk-free interest rate 4.4 % 4.3 % 2021 Three-year PSU Awards In February 2024, the P&C Committee reviewed the performance results for the 2021-2023 PSUs. Performance goals for these PSUs were based on Adjusted EBITDA CAGR, ROIC, and the Company's TSR ranking relative to S&P 500 component companies over the performance period. Based on overall performance for the 2021-2023 PSUs, these awards paid out at 75% of target or 152,934 units. Of this, 55,607 units were withheld to cover employee tax withholding and 732 units were designated as cash-settled awards, resulting in net share issuances of 96,595. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table provides details of comprehensive income (loss) for the three months ended March 31, 2024 and 2023: (In millions) Unrecognized Cumulative Translation Adjustment (1) Unrecognized Unrecognized Accumulated Other Balance at December 31, 2023 $ (146.4) $ (770.6) $ (38.1) $ (0.4) $ (955.5) Other comprehensive (loss) income before reclassifications (0.2) (40.4) 8.4 1.3 (30.9) Less: amounts reclassified from accumulated other comprehensive loss 1.1 — — 0.1 1.2 Net current period other comprehensive income (loss) 0.9 (40.4) 8.4 1.4 (29.7) Balance at March 31, 2024 $ (145.5) $ (811.0) $ (29.7) $ 1.0 $ (985.2) Balance at December 31, 2022 $ (126.3) $ (837.5) $ (18.3) $ 3.3 $ (978.8) Other comprehensive income (loss) before reclassifications 0.2 36.6 (5.5) (1.9) 29.4 Less: amounts reclassified from accumulated other comprehensive loss 1.1 — — (0.9) 0.2 Net current period other comprehensive income (loss) 1.3 36.6 (5.5) (2.8) 29.6 Balance at March 31, 2023 $ (125.0) $ (800.9) $ (23.8) $ 0.5 $ (949.2) (1) Includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustment was $8.8 million and $7.9 million for the three months ended March 31, 2024 and 2023, respectively. The following table provides detail of amounts reclassified from AOCL: Three Months Ended (In millions) 2024 2023 Location of Amount Defined benefit pension plans and other post-employment benefits: Net settlement cost $ — $ (0.2) Actuarial losses (1.4) (1.2) Total pre-tax amount (1.4) (1.4) Other expense, net Tax benefit 0.3 0.3 Net of tax (1.1) (1.1) Net gains on cash flow hedging derivatives: (1) Foreign currency forward contracts (0.2) 1.1 Cost of sales Total pre-tax amount (0.2) 1.1 Tax benefit (expense) 0.1 (0.2) Net of tax (0.1) 0.9 Total reclassifications for the period $ (1.2) $ (0.2) (1) These accumulated other comprehensive components are included in our derivative and hedging activities. See Note 14, “Derivatives and Hedging Activities,” for additional details. |
Other Expense, net
Other Expense, net | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Expense, net | Other Expense, net The following table provides details of Other expense, net: Three Months Ended (In millions) 2024 2023 Net foreign exchange transaction gain (loss) $ 1.2 $ (4.9) Bank fee expense (1.0) (1.4) Pension cost other than service cost (1.8) (2.1) Foreign currency exchange loss due to highly inflationary economies (4.9) (2.6) Loss on debt redemption and refinancing activities — (4.9) Other income 6.6 2.6 Other expense (0.9) (1.7) Other expense, net $ (0.8) $ (15.0) |
Net Earnings Per Common Share
Net Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Common Share | Net Earnings Per Common Share The following table shows the calculation of basic and diluted net earnings per common share: Three Months Ended (In millions, except per share amounts) 2024 2023 Basic Net Earnings Per Common Share: Numerator: Net earnings $ 82.0 $ 61.9 Distributed and allocated undistributed net earnings to unvested restricted stockholders — — Net earnings available to common stockholders $ 82.0 $ 61.9 Denominator: Weighted average number of common shares outstanding - basic 144.9 144.1 Basic net earnings per common share: Basic net earnings per common share $ 0.57 $ 0.43 Diluted Net Earnings Per Common Share: Numerator: Net earnings available to common stockholders $ 82.0 $ 61.9 Denominator: Weighted average number of common shares outstanding - basic 144.9 144.1 Effect of dilutive stock shares and units 0.5 0.7 Weighted average number of common shares outstanding - diluted under treasury stock 145.4 144.8 Diluted net earnings per common share $ 0.56 $ 0.43 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net earnings | $ 82 | $ 61.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Our Condensed Consolidated Financial Statements include all of the accounts of the Company and our subsidiaries. We have eliminated all significant intercompany transactions and balances in consolidation. In management’s opinion, all adjustments, consisting only of normal recurring accruals, necessary for a fair statement of our Condensed Consolidated Balance Sheet as of March 31, 2024 and our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 have been made. The results set forth in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and in our Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year. The Condensed Consolidated Balance Sheet as of December 31, 2023 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. All amounts are in millions, except per share amounts, and are approximate due to rounding. All amounts are presented in U.S. dollar, unless otherwise specified. Our Condensed Consolidated Financial Statements were prepared in accordance with the interim reporting requirements of the SEC. As permitted under those rules, annual footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted. The preparation of Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from these estimates. We are responsible for the unaudited Condensed Consolidated Financial Statements and notes included in this report. As these are condensed financial statements, they should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (“2023 Form 10-K”), which was filed with the SEC on February 27, 2024, and with the information contained in our other publicly available filings with the SEC. When we cross reference to a “Note,” we are referring to our “Notes to Condensed Consolidated Financial Statements,” unless the context indicates otherwise. There were no significant changes to our significant accounting policies as disclosed in “Note 2 – Summary of Significant Accounting Policies and Recently Adopted and Issued Accounting Standards” of our audited consolidated financial statements and notes thereto included in our 2023 Form 10-K. |
Impact of Highly Inflationary Economy | Impact of Highly Inflationary Economy Argentina |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations ("ASU 2022-04"). ASU 2022-04 requires the buyer in a supplier finance program to disclose qualitative and quantitative information about the program. The Company adopted ASU 2022-04 on January 1, 2023, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The adoption did not materially impact the Company's Condensed Consolidated Financial Statements. We facilitate a voluntary supply chain financing program to provide some of our suppliers with the opportunity to sell receivables due from us (our accounts payables) to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. This program is administered by participating financial institutions. When a supplier utilizes the supply chain financing program, the supplier receives a payment in advance of agreed payment terms from the financial institution, net of a discount charged. Our responsibility is limited to making payments to the respective financial institutions on the terms originally negotiated with our supplier. We monitor our days payable outstanding relative to our peers and industry trends in order to assess our conclusion that the program continues to be a trade payable program and not indicative of a borrowing arrangement. The liabilities continue to be presented as Accounts payable in our Condensed Consolidated Balance Sheets until they are paid, and they are reflected as Cash flows from operating activities when settled. At March 31, 2024 and December 31, 2023, our accounts payable balances included $164.2 million and $153.0 million, respectively, related to invoices from suppliers participating in the program. Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires the annual disclosure of specific categories in the rate reconciliation and additional information for the reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate). ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 requires annual and interim disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), the disclosure and description of other segment items, the inclusion of all current annual disclosures about a reportable segment in interim periods, allows for disclosure of multiple measures of a reportable segment's profit or loss, requires disclosure of the CODM's title and position, and requires a description of how the CODM uses reported measures in assessing the performance of reportable segments and in making decisions pertaining to allocation of resources. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating this ASU to determine its impact on the Company's disclosures. |
Revenue Recognition, Contracts with Customers | Description of Revenue Generating Activities We employ sales, marketing and customer service personnel throughout the world who sell and market our products, services, equipment and systems. As discussed in Note 6, “Segments,” our reporting segments are Food and Protective. Our Food solutions are largely sold directly to end customers, while our Protective solutions are sold through business supply distributors and directly to end customers. Food: Food solutions are sold to food processors in fresh red meat, smoked and processed meats, poultry, seafood, fluids and liquids, cheese, and other food markets worldwide. Food offers integrated packaging materials and automated equipment solutions to increase food safety, extend shelf life, reduce food waste, automate processes and optimize total cost. Its materials, automated equipment and service enable customers to reduce costs and enhance their brands in the marketplace. Food solutions are utilized by food service businesses (such as restaurants and entertainment venues) (“food service”) and food retailers (such as grocery stores and supermarkets) (“food retail”), among others. Solutions serving the food service market include products such as barrier bags and pouches, and are primarily marketed under the CRYOVAC ® trademark and other highly recognized trade names including CRYOVAC ® brand Barrier Bags, CRYOVAC ® brand Form-Fill-Seal Films, CRYOVAC ® brand Auto Pouch Systems and LIQUIBOX ® brand liquids systems. Solutions serving the food retail market include products such as barrier bags, film, and trays, and are primarily marketed under the CRYOVAC ® trademark and other highly recognized trade names including CRYOVAC ® brand Grip & Tear TM , CRYOVAC ® brand Darfresh ® , OptiDure™, Simple Steps ® , and CRYOVAC ® brand Barrier Bags. Protective: Protective packaging solutions are utilized across many global markets to protect goods during transit and are especially valuable to e-commerce, consumer goods, pharmaceutical and medical devices and industrial manufacturing. Protective solutions are designed to increase our customers' packaging velocity, minimize packaging waste, reduce labor dependencies and address dimensional weight challenges. Protective solutions are sold through a strategic network of distributors as well as directly to our customers, including, but not limited to, fabricators, original equipment manufacturers, contract manufacturers, logistics partners and e-commerce/fulfillment operations. Protective solutions are marketed under SEALED AIR ® brand, BUBBLE WRAP ® brand, AUTOBAG ® brand and other highly recognized trade names and product families including BUBBLE WRAP ® brand inflatable packaging, SEALED AIR ® brand performance shrink films, AUTOBAG ® brand bagging systems, Instapak ® polyurethane foam packaging solutions and Korrvu ® suspension and retention packaging. Other Revenue Recognition Considerations: Charges for rebates and other allowances are recognized as a deduction from revenue on an accrual basis in the period in which the associated revenue is recorded. Revenue recognized from performance obligations satisfied in previous reporting periods was $1.1 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively. The Company does not adjust consideration in contracts with customers for the effects of a significant financing component if the Company expects that the period between transfer of a good or service and payment for that good or service will be one year or less. This is expected to be the case for the majority of the Company's contracts. |
Revenue Recognition, Contract_2
Revenue Recognition, Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts With Customers Summarized by Segment | For the three months ended March 31, 2024 and 2023, revenues from contracts with customers summarized by Segment and Geographic region were as follows: Three Months Ended (In millions) Food Protective Total Americas $ 578.6 $ 296.3 $ 874.9 EMEA 172.7 99.5 272.2 APAC 110.9 63.5 174.4 Topic 606 Segment Revenue 862.2 459.3 1,321.5 Non-Topic 606 Revenue (Leasing: Sales-type and Operating) 6.2 1.9 8.1 Total $ 868.4 $ 461.2 $ 1,329.6 Three Months Ended (In millions) Food Protective Total Americas $ 566.1 $ 306.2 $ 872.3 EMEA 169.2 119.6 288.8 APAC 112.3 68.6 180.9 Topic 606 Segment Revenue 847.6 494.4 1,342.0 Non-Topic 606 Revenue (Leasing: Sales-type and Operating) 5.5 1.3 6.8 Total $ 853.1 $ 495.7 $ 1,348.8 |
Opening and Closing Balances of Contract Assets and Contract Liabilities | The following contract assets and liabilities are included within Prepaid expenses and other current assets and Other current liabilities, or Other non-current liabilities on our Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: (In millions) March 31, 2024 December 31, 2023 Contract assets $ 0.4 $ 0.4 Contract liabilities $ 20.6 $ 19.9 |
Summary of Estimated Transaction Price from Contracts With Customers Allocated to Performance Obligations Remaining Performance Obligation, Expected Timing of Satisfaction | The following table summarizes the estimated transaction price from contracts with customers allocated to performance obligations or portions of performance obligations that have not yet been satisfied as of March 31, 2024 and December 31, 2023, as well as the expected timing of recognition of that transaction price. (In millions) March 31, 2024 December 31, 2023 Short-Term (12 months or less) (1) $ 13.3 $ 13.3 Long-Term 7.3 6.6 Total transaction price $ 20.6 $ 19.9 (1) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Summary of Lease Payments Captured in Lease Receivable | All lease payments are primarily fixed in nature and therefore captured in the lease receivable. Our sales-type lease receivable balances at March 31, 2024 and December 31, 2023 were as follows: (In millions) March 31, 2024 December 31, 2023 Short-Term (12 months or less) $ 8.7 $ 8.5 Long-Term 33.3 33.3 Lease receivables $ 42.0 $ 41.8 |
Assets and Liabilities, Lessee | The following table details our lease obligations included in our Condensed Consolidated Balance Sheets. (In millions) March 31, 2024 December 31, 2023 Other non-current assets: Finance leases - ROU assets $ 37.5 $ 36.0 Finance leases - Accumulated depreciation (15.3) (14.9) Operating lease right-of-use-assets: Operating leases - ROU assets 195.5 203.1 Operating leases - Accumulated depreciation (115.2) (116.6) Total lease assets $ 102.5 $ 107.6 Current portion of long-term debt: Finance leases $ (7.1) (6.7) Current portion of operating lease liabilities: Operating leases (27.4) (29.2) Long-term debt, less current portion: Finance leases (13.8) (12.8) Long-term operating lease liabilities, less current portion: Operating leases (61.8) (66.7) Total lease liabilities $ (110.1) $ (115.4) |
Operating Lease, Future Minimum Annual Rental Commitments | At March 31, 2024, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows: (In millions) Finance leases Operating leases Remainder of 2024 $ 6.6 $ 24.9 2025 6.1 27.5 2026 4.1 21.2 2027 1.9 12.1 2028 1.0 7.1 Thereafter 8.1 10.3 Total lease payments 27.8 103.1 Less: Interest (6.9) (13.9) Present value of lease liabilities $ 20.9 $ 89.2 |
Finance Lease, Future Minimum Annual Rental Commitments | At March 31, 2024, estimated future minimum annual rental commitments under non-cancelable real and personal property leases were as follows: (In millions) Finance leases Operating leases Remainder of 2024 $ 6.6 $ 24.9 2025 6.1 27.5 2026 4.1 21.2 2027 1.9 12.1 2028 1.0 7.1 Thereafter 8.1 10.3 Total lease payments 27.8 103.1 Less: Interest (6.9) (13.9) Present value of lease liabilities $ 20.9 $ 89.2 |
Schedule of Lease Costs and Other Information | The following lease cost is included in our Condensed Consolidated Statements of Operations: Three Months Ended (In millions) 2024 2023 Lease cost (1) Finance leases Amortization of ROU assets $ 2.0 $ 2.5 Interest on lease liabilities 0.4 0.4 Operating leases 9.4 9.0 Short-term lease cost 0.2 0.6 Variable lease cost 1.7 1.8 Total lease cost $ 13.7 $ 14.3 (1) With the exception of Interest on lease liabilities, we record lease costs to Cost of sales or Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations, depending on the use of the leased asset. Interest on lease liabilities is recorded to Interest expense, net on the Condensed Consolidated Statements of Operations. The following table details cash paid related to operating and finance leases included in our Condensed Consolidated Statements of Cash Flows and new right-of-use (“ROU”) assets included in our Condensed Consolidated Balance Sheets: Three Months Ended (In millions) 2024 2023 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows - finance leases $ 0.9 $ 1.1 Operating cash flows - operating leases $ 9.8 $ 9.1 Financing cash flows - finance leases $ 1.8 $ 2.3 ROU assets obtained in exchange for new finance lease liabilities $ 3.3 $ 5.9 ROU assets obtained in exchange for new operating lease liabilities $ 2.3 $ 20.8 Three Months Ended 2024 2023 Weighted average information: Finance leases Remaining lease term (in years) 5.9 8.3 Discount rate 7.5 % 6.3 % Operating leases Remaining lease term (in years) 4.3 4.4 Discount rate 6.0 % 5.3 % |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Consideration transferred and the Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed | Preliminary Allocation Measurement Period Final Allocation (In millions) As of February 1, 2023 Adjustments December 31, 2023 Total consideration transferred $ 1,169.2 $ (2.1) $ 1,167.1 Assets acquired: Cash and cash equivalents 21.2 — 21.2 Trade receivables 48.6 (0.8) 47.8 Inventories 61.6 (2.8) 58.8 Prepaid expenses and other current assets 15.8 (1.7) 14.1 Property and equipment 101.1 (8.2) 92.9 Identifiable intangible assets 342.1 4.2 346.3 Operating lease right-of-use-assets 15.1 — 15.1 Other non-current assets 9.5 (1.5) 8.0 Total assets acquired $ 615.0 $ (10.8) $ 604.2 Liabilities assumed: Accounts payable 27.0 (1.4) 25.6 Current portion of long-term debt 0.1 — 0.1 Current portion of operating lease liabilities 3.7 — 3.7 Other current liabilities 28.4 2.8 31.2 Long-term debt, less current portion 5.1 — 5.1 Long-term operating lease liabilities, less current portion 11.4 — 11.4 Deferred taxes 92.2 (35.1) 57.1 Other non-current liabilities 6.6 (4.2) 2.4 Total liabilities assumed $ 174.5 $ (37.9) $ 136.6 Net assets acquired 440.5 27.1 467.6 Goodwill $ 728.7 $ (29.2) $ 699.5 |
Schedule of Identifiable Intangible Assets, net and Their Useful Life | The following table summarizes the identifiable intangible assets and their useful lives. Amount Useful life (In millions) (In years) Customer relationships $ 186.4 11.0 Trademarks and tradenames 26.0 10.0 Software 3.7 2.0 Technology 130.2 12.0 Total intangible assets with definite lives $ 346.3 |
Schedule of Financial Information | The following table presents the amounts of net sales and net loss attributed to Liquibox since the acquisition date that are included in our Condensed Consolidated Statements of Operations for the three months ended March 31, 2023: (In millions) February 1, 2023 through March 31, 2023 Net sales $ 57.3 Net loss $ (5.4) |
Unaudited Pro Forma Information | The unaudited pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2022 and is not intended to be a projection of future results and gives no effect to any future synergistic benefits that may result from the combination or the costs of integrating the acquired operations with those of the Company. (In millions) Three Months Ended Net sales $ 1,374.4 Net earnings $ 70.0 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Net Sales and Adjusted EBITDA by Reportable Segments | The following tables show Net sales and Segment Adjusted EBITDA by reportable segment: Three Months Ended (In millions) 2024 2023 Net sales: Food $ 868.4 $ 853.1 As a % of Consolidated net sales 65.3 % 63.2 % Protective 461.2 495.7 As a % of Consolidated net sales 34.7 % 36.8 % Consolidated Net sales $ 1,329.6 $ 1,348.8 Three Months Ended (In millions) 2024 2023 Segment Adjusted EBITDA: Food $ 189.6 $ 194.8 Adjusted EBITDA Margin 21.8 % 22.8 % Protective 89.5 80.4 Adjusted EBITDA Margin 19.4 % 16.2 % Total Segment Adjusted EBITDA $ 279.1 $ 275.2 |
Reconciliation of Net Earning (Loss) to Total Company Adjusted EBITDA | The following table shows a reconciliation of Segment Adjusted EBITDA to Earnings before income tax provision: Three Months Ended (In millions) 2024 2023 Food Adjusted EBITDA $ 189.6 $ 194.8 Protective Adjusted EBITDA 89.5 80.4 Corporate Adjusted EBITDA (0.8) (7.9) Interest expense, net (65.1) (57.8) Depreciation and amortization, net of adjustments (1) (60.9) (68.9) Special Items: Liquibox intangible amortization (7.5) (5.0) Liquibox inventory step-up expense — (8.4) Restructuring charges (2) (15.5) 1.2 Other restructuring associated costs (6.8) 0.2 Foreign currency exchange loss due to highly inflationary economies (4.9) (2.6) Loss on debt redemption and refinancing activities — (4.9) Contract terminations 0.1 — Charges related to acquisition and divestiture activity (3) 1.9 (16.9) Other Special Items (4) (0.5) (7.5) Pre-tax impact of Special Items (33.2) (43.9) Earnings before income tax provision $ 119.1 $ 96.7 (1) Net of Liquibox intangible amortization, which is included under Special Items. Depreciation and amortization by segment were as follows: Three Months Ended (In millions) 2024 2023 Food $ 46.9 $ 46.7 Protective 21.5 27.2 Total Company depreciation and amortization (i) $ 68.4 $ 73.9 Liquibox intangible amortization (7.5) (5.0) Depreciation and amortization, net of adjustments $ 60.9 $ 68.9 (i) Includes share-based incentive compensation of $8.7 million and $18.0 million for the three months ended March 31, 2024 and 2023, respectively. (2) Restructuring charges by segment were as follows: Three Months Ended (In millions) 2024 2023 Food $ 8.6 $ (0.9) Protective 6.9 (0.3) Total Company restructuring charges $ 15.5 $ (1.2) (3) Charges related to acquisition and divestiture activity for the three months ended March 31, 2024 primarily consists of income recognized on the final purchase price settlement related to the Liquibox acquisition. (4) Other Special Items for the three months ended March 31, 2023 primarily relate to a one-time, non-cash cumulative translation adjustment (CTA) loss recognized due to the wind-up of one of our legal entities. |
Assets by Reportable Segments | The following table shows assets allocated by reportable segment. Assets allocated by reportable segment include: trade receivables, net; inventory, net; property and equipment, net; goodwill; intangible assets, net; and leased systems, net. (In millions) March 31, 2024 December 31, 2023 Assets allocated to segments: Food $ 3,396.6 $ 3,386.4 Protective 2,662.6 2,663.4 Total segments 6,059.2 6,049.8 Assets not allocated: Cash and cash equivalents $ 352.8 $ 346.1 Income tax receivables 27.6 44.9 Other receivables 92.2 94.2 Advances and deposits 69.7 72.8 Deferred taxes 130.7 130.8 Other 467.1 462.0 Total $ 7,199.3 $ 7,200.6 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, net | The following table details our inventories, net. (In millions) March 31, 2024 December 31, 2023 Raw materials $ 162.2 $ 165.3 Work in process 180.1 178.5 Finished goods 447.9 430.5 Total $ 790.2 $ 774.3 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, net | The following table details our property and equipment, net. (In millions) March 31, 2024 December 31, 2023 Land and improvements $ 46.7 $ 47.5 Buildings 837.8 835.8 Machinery and equipment 2,807.5 2,811.5 Other property and equipment 141.9 142.0 Construction-in-progress 230.0 227.0 Property and equipment, gross 4,063.9 4,063.8 Accumulated depreciation and amortization (2,652.7) (2,647.4) Property and equipment, net $ 1,411.2 $ 1,416.4 |
Interest Cost Capitalized and Depreciation and Amortization Expense for Property and Equipment | The following table details our interest cost capitalized and depreciation and amortization expense for property and equipment and finance lease ROU assets. Three Months Ended (In millions) 2024 2023 Interest cost capitalized $ 3.3 $ 2.5 Depreciation and amortization expense (1) $ 44.8 $ 40.7 (1) Includes amortization expense of finance lease ROU assets of $2.0 million and $2.5 million for the three months ended March 31, 2024 and 2023, respectively. |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill Balances by Segment Reporting Structure | The following table shows our goodwill balances by reportable segment: (In millions) Food Protective Total Gross Carrying Value at December 31, 2023 $ 1,284.3 $ 1,798.1 $ 3,082.4 Accumulated amortization (1) (49.1) (140.8) (189.9) Carrying Value at December 31, 2023 $ 1,235.2 $ 1,657.3 $ 2,892.5 Currency translation (0.9) (3.9) (4.8) Carrying Value at March 31, 2024 $ 1,234.3 $ 1,653.4 $ 2,887.7 (1) |
Summary of Identifiable Intangible Assets with Indefinite Useful Lives | The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives. As of March 31, 2024, there were no impairment indicators present. March 31, 2024 December 31, 2023 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 286.5 $ (74.2) $ 212.3 $ 287.7 $ (69.3) $ 218.4 Trademarks and tradenames 57.0 (20.6) 36.4 57.0 (19.4) 37.6 Software 151.2 (117.3) 33.9 148.2 (112.8) 35.4 Technology 196.8 (63.8) 133.0 197.5 (60.1) 137.4 Contracts 11.4 (10.3) 1.1 11.5 (10.2) 1.3 Total intangible assets with definite lives 702.9 (286.2) 416.7 701.9 (271.8) 430.1 Trademarks and tradenames with indefinite lives 8.9 — 8.9 8.9 — 8.9 Total identifiable intangible assets, net $ 711.8 $ (286.2) $ 425.6 $ 710.8 $ (271.8) $ 439.0 |
Summary of Identifiable Intangible Assets with Definite Useful Lives | The following tables summarize our identifiable intangible assets, net with definite and indefinite useful lives. As of March 31, 2024, there were no impairment indicators present. March 31, 2024 December 31, 2023 (In millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 286.5 $ (74.2) $ 212.3 $ 287.7 $ (69.3) $ 218.4 Trademarks and tradenames 57.0 (20.6) 36.4 57.0 (19.4) 37.6 Software 151.2 (117.3) 33.9 148.2 (112.8) 35.4 Technology 196.8 (63.8) 133.0 197.5 (60.1) 137.4 Contracts 11.4 (10.3) 1.1 11.5 (10.2) 1.3 Total intangible assets with definite lives 702.9 (286.2) 416.7 701.9 (271.8) 430.1 Trademarks and tradenames with indefinite lives 8.9 — 8.9 8.9 — 8.9 Total identifiable intangible assets, net $ 711.8 $ (286.2) $ 425.6 $ 710.8 $ (271.8) $ 439.0 |
Remaining Estimated Future Amortization Expense | The following table shows the remaining estimated future amortization expense at March 31, 2024. Year Amount (In millions) Remainder of 2024 $ 47.8 2025 57.2 2026 46.1 2027 39.7 2028 39.0 Thereafter 186.9 Total $ 416.7 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of CTO2Grow Restructuring Spend Estimated to be Incurred | CTO2Grow Program restructuring spend is estimated to be incurred as follows: Total Restructuring Program Range Less Program Activity to Date Remaining Restructuring (In millions) Low High Low High Costs of reduction in headcount as a result of reorganization $ 90 $ 95 $ (32) $ 58 $ 63 Other associated costs 20 25 (8) 12 17 Contract terminations 25 30 (15) 10 15 Total cash expense 135 150 (55) 80 95 Capital expenditures 5 10 — 5 10 Total estimated cash cost (1) $ 140 $ 160 $ (55) $ 85 $ 105 Total estimated non-cash expense (2) $ 33 $ 33 $ (33) $ — $ — Total estimated expense (3) $ 168 $ 183 $ (88) $ 80 $ 95 (1) Total estimated cash cost excludes the impact of proceeds expected from the sale of property and equipment and foreign currency impact. (2) Reflects actual expenses that have been incurred. Ranges associated with future non-cash expenses related to the CTO2Grow Program are difficult to estimate and are not available without unreasonable efforts, as these typically relate to exit and disposal activities. (3) Total estimated expense excludes capital expenditures. |
Restructuring and Relocation Activities | The following table details our aggregate restructuring activities as reflected in the Condensed Consolidated Statements of Operations. Three Months Ended (In millions) 2024 2023 Other associated costs $ 6.8 $ (0.2) Contract terminations (0.1) — Restructuring charges 15.5 (1.2) Total charges $ 22.2 $ (1.4) Capital expenditures $ — $ — |
Components of Restructuring Accrual, Spending and Other Activity and Accrual Balance Remaining | The aggregate restructuring accrual, spending and other activity for the three months ended March 31, 2024 and the accrual balance remaining at March 31, 2024 was as follows: (In millions) Restructuring accrual at December 31, 2023 $ 24.3 Headcount accrual and accrual adjustments 15.5 Cash payments during 2024 (9.8) Effect of changes in foreign currency exchange rates (0.3) Restructuring accrual at March 31, 2024 (1) $ 29.7 (1) Excludes $3.6 million of remaining lease obligations on terminated contracts included in Current portion of operating lease liabilities and Long-term operating lease liabilities, less current portion on our Condensed Consolidated Balance Sheets. |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Total Debt Outstanding | Our total debt outstanding consisted of the amounts set forth in the following table: (In millions) Interest rate March 31, 2024 December 31, 2023 Short-term borrowings (1) $ 134.6 $ 140.7 Current portion of long-term debt (2) 43.5 35.7 Total current debt 178.1 176.4 Term Loan A due March 2027 989.3 1,021.1 Senior Notes due September 2025 5.500 % 399.3 399.1 Senior Secured Notes due October 2026 1.573 % 597.3 597.0 Senior Notes due December 2027 4.000 % 422.7 422.5 Senior Notes due February 2028 6.125 % 765.3 764.8 Senior Notes due April 2029 5.000 % 421.8 421.7 Senior Notes due February 2031 7.250 % 421.0 420.9 Senior Notes due July 2033 6.875 % 446.7 446.7 Other (2) 20.8 20.1 Total long-term debt, less current portion (3) 4,484.2 4,513.9 Total debt (4) $ 4,662.3 $ 4,690.3 (1) Short-term borrowings of $134.6 million at March 31, 2024, were comprised of $81.5 million under our European securitization program, $50.0 million under our U.S. securitization program, and $3.1 million of short-term borrowings from various lines of credit. Short-term borrowings of $140.7 million at December 31, 2023, were comprised of $86.7 million under our European securitization program, $46.5 million under our U.S. securitization program, and $7.5 million of short-term borrowings from various lines of credit. (2) Current portion of long-term debt included finance lease liabilities of $7.1 million and $6.7 million at March 31, 2024 and December 31, 2023, respectively. Other debt includes long-term liabilities associated with our finance leases of $13.8 million and $12.8 million at March 31, 2024 and December 31, 2023, respectively. See Note 4, "Leases," for additional information on finance and operating lease liabilities. (3) Amounts are shown net of unamortized discounts and issuance costs of $34.7 million as of March 31, 2024 and $36.9 million as of December 31, 2023. (4) As of March 31, 2024, our weighted average interest rate on our short-term borrowings outstanding was 5.4% and on our long-term debt outstanding was 5.6%. As of December 31, 2023, our weighted average interest rate on our short-term borrowings outstanding was 5.3% and on our long-term debt outstanding was 5.6%. |
Lines of Credit | The following table summarizes our available lines of credit and committed and uncommitted lines of credit, including our revolving credit facility, and the amounts available under our accounts receivable securitization programs. (In millions) March 31, 2024 December 31, 2023 Used lines of credit (1) $ 134.6 $ 140.7 Unused lines of credit 1,134.9 1,134.7 Total available lines of credit (2) $ 1,269.5 $ 1,275.4 (1) Includes total borrowings under the accounts receivable securitization programs, the revolving credit facility and borrowings under lines of credit available to several subsidiaries. (2) Of the total available lines of credit, $1,132.0 million was committed as of March 31, 2024. |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table details the fair value of our derivative instruments included on our Condensed Consolidated Balance Sheets. Cash Flow Hedge Net Investment Hedge Non-Designated as Hedging Instruments Total (In millions) March 31, 2024 December 31, 2023 March 31, December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Derivative Assets Foreign currency forward contracts $ 1.0 $ 0.2 $ — $ — $ 5.0 $ 4.9 $ 6.0 $ 5.1 Total Derivative Assets $ 1.0 $ 0.2 $ — $ — $ 5.0 $ 4.9 $ 6.0 $ 5.1 Derivative Liabilities Foreign currency forward contracts $ (0.5) $ (2.7) $ — $ — $ (1.1) $ (1.6) $ (1.6) $ (4.3) Cross-currency swaps — — (8.8) (19.9) — — (8.8) (19.9) Total Derivative Liabilities $ (0.5) $ (2.7) $ (8.8) $ (19.9) $ (1.1) $ (1.6) $ (10.4) $ (24.2) Net Derivatives (1) $ 0.5 $ (2.5) $ (8.8) $ (19.9) $ 3.9 $ 3.3 $ (4.4) $ (19.1) (1) The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities Other Non-current Liabilities (In millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Gross position $ 6.0 $ 5.1 $ (1.6) $ (4.3) $ (8.8) $ (19.9) Impact of master netting agreements (0.9) (1.1) 0.9 1.1 — — Net amounts recognized on the Condensed Consolidated Balance Sheets $ 5.1 $ 4.0 $ (0.7) $ (3.2) $ (8.8) $ (19.9) |
Offsetting Assets | The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities Other Non-current Liabilities (In millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Gross position $ 6.0 $ 5.1 $ (1.6) $ (4.3) $ (8.8) $ (19.9) Impact of master netting agreements (0.9) (1.1) 0.9 1.1 — — Net amounts recognized on the Condensed Consolidated Balance Sheets $ 5.1 $ 4.0 $ (0.7) $ (3.2) $ (8.8) $ (19.9) |
Offsetting Liabilities | The following table reconciles gross positions without the impact of master netting agreements to the balance sheet classification: Other Current Assets Other Current Liabilities Other Non-current Liabilities (In millions) March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 December 31, 2023 Gross position $ 6.0 $ 5.1 $ (1.6) $ (4.3) $ (8.8) $ (19.9) Impact of master netting agreements (0.9) (1.1) 0.9 1.1 — — Net amounts recognized on the Condensed Consolidated Balance Sheets $ 5.1 $ 4.0 $ (0.7) $ (3.2) $ (8.8) $ (19.9) |
Effect of Derivative Instruments on Condensed Consolidated Statements of Operations | The following table details the effect of our derivative instruments on our Condensed Consolidated Statements of Operations. Amount of (Loss) Gain Recognized in Location of (Loss) Gain Recognized on Three Months Ended (In millions) Condensed Consolidated Statements of Operations 2024 2023 Derivatives designated as hedging instruments: Cash Flow Hedges: Foreign currency forward contracts Cost of sales $ (0.2) $ 1.1 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other expense, net 3.7 3.3 Total $ 3.5 $ 4.4 |
Fair Value Measurements, Equi_2
Fair Value Measurements, Equity Investments and Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy of Financial Instruments | The fair value, measured on a recurring basis, of our financial instruments, using the fair value hierarchy under U.S. GAAP, are included in the table below. March 31, 2024 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 46.4 $ 46.4 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ 4.4 $ — $ 4.4 $ — Cross-currency swaps $ (8.8) $ — $ (8.8) $ — December 31, 2023 (In millions) Total Fair Value Level 1 Level 2 Level 3 Cash equivalents $ 40.2 $ 40.2 $ — $ — Derivative financial and hedging instruments net asset (liability): Foreign currency forward contracts $ 0.8 $ — $ 0.8 $ — Cross-currency swaps $ (19.9) $ — $ (19.9) $ — |
Carrying Value of Investments Without Readily Determinable Fair Values | The following carrying value of these investments were included within Other non-current assets in our Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: (In millions) March 31, 2024 December 31, 2023 Carrying value at the beginning of period $ 13.8 $ 13.3 Purchases — — Impairments or downward adjustments — — Upward adjustments — — Currency translation on investments (0.3) 0.5 Carrying value at the end of period $ 13.5 $ 13.8 |
Carrying Amounts and Estimated Fair Values of Debt | The table below shows the carrying amounts and estimated fair values of our debt, excluding our lease liabilities. March 31, 2024 December 31, 2023 (In millions) Interest rate Carrying Amount Fair Value Carrying Amount Fair Value Term Loan A due March 2027 (1) $ 1,025.7 $ 1,025.7 $ 1,050.1 $ 1,050.1 Senior Notes due September 2025 5.500 % 399.3 398.6 399.1 400.7 Senior Secured Notes due October 2026 1.573 % 597.3 541.7 597.0 539.5 Senior Notes due December 2027 4.000 % 422.7 397.9 422.5 399.4 Senior Notes due February 2028 6.125 % 765.3 775.7 764.8 780.8 Senior Notes due April 2029 5.000 % 421.8 407.4 421.7 410.8 Senior Notes due February 2031 7.250 % 421.0 441.9 420.9 450.3 Senior Notes due July 2033 6.875 % 446.7 468.5 446.7 477.0 Other foreign borrowings (1) 84.6 84.6 94.1 94.1 Other domestic borrowings 57.1 57.1 65.9 65.0 Total debt (2) $ 4,641.5 $ 4,599.1 $ 4,682.8 $ 4,667.7 (1) Includes borrowings denominated in currencies other than U.S. dollars. (2) |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Income) | The following tables show the components of net benefit cost for our defined benefit pension plans for the three months ended March 31, 2024 and 2023: Three Months Ended Three Months Ended (In millions) U.S. International Total U.S. International Total Components of net periodic benefit cost: Service cost $ — $ 0.9 $ 0.9 $ — $ 0.8 $ 0.8 Interest cost 1.6 5.1 6.7 1.8 5.2 7.0 Expected return on plan assets (1.7) (5.8) (7.5) (1.8) (5.3) (7.1) Amortization of net prior service cost — 0.1 0.1 — 0.1 0.1 Amortization of net actuarial loss 0.4 1.0 1.4 0.4 0.8 1.2 Net periodic benefit cost 0.3 1.3 1.6 0.4 1.6 2.0 Settlement cost — — — — 0.2 0.2 Total benefit cost $ 0.3 $ 1.3 $ 1.6 $ 0.4 $ 1.8 $ 2.2 The following table shows the components of net periodic benefit cost for our other post-employment benefit plans for the three months ended March 31, 2024 and 2023: Three Months Ended (In millions) 2024 2023 Components of net periodic benefit cost: Interest cost $ 0.4 $ 0.4 Amortization of net prior service credit and net actuarial gain (0.1) (0.1) Net periodic benefit cost $ 0.3 $ 0.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Total Share-based Incentive Compensation Expense | The table below shows our total share-based incentive compensation expense: Three Months Ended (In millions) 2024 2023 Total share-based incentive compensation expense (1) $ 8.7 $ 18.0 (1) |
Number of PSUs Granted and Grant Date Fair Value of PSUs | The target number of PSUs granted and the grant date fair value of the PSUs are shown in the following table: Adjusted EBITDA CAGR ROIC February 21, 2024 grant date Number of units granted 50,340 50,340 Fair value on grant date (per unit) $ 41.09 $ 41.09 March 1, 2024 grant date Number of units granted 22,692 22,692 Fair value on grant date (per unit) $ 39.49 $ 39.49 |
Summary of Assumptions Used to Calculate the Grant Date Fair Value | The assumptions used to calculate the grant date fair value of the PSUs are shown in the following table: February 21, 2024 March 1, 2024 Expected price volatility 31.7 % 31.9 % Risk-free interest rate 4.4 % 4.3 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Details of Comprehensive Income (Loss) | The following table provides details of comprehensive income (loss) for the three months ended March 31, 2024 and 2023: (In millions) Unrecognized Cumulative Translation Adjustment (1) Unrecognized Unrecognized Accumulated Other Balance at December 31, 2023 $ (146.4) $ (770.6) $ (38.1) $ (0.4) $ (955.5) Other comprehensive (loss) income before reclassifications (0.2) (40.4) 8.4 1.3 (30.9) Less: amounts reclassified from accumulated other comprehensive loss 1.1 — — 0.1 1.2 Net current period other comprehensive income (loss) 0.9 (40.4) 8.4 1.4 (29.7) Balance at March 31, 2024 $ (145.5) $ (811.0) $ (29.7) $ 1.0 $ (985.2) Balance at December 31, 2022 $ (126.3) $ (837.5) $ (18.3) $ 3.3 $ (978.8) Other comprehensive income (loss) before reclassifications 0.2 36.6 (5.5) (1.9) 29.4 Less: amounts reclassified from accumulated other comprehensive loss 1.1 — — (0.9) 0.2 Net current period other comprehensive income (loss) 1.3 36.6 (5.5) (2.8) 29.6 Balance at March 31, 2023 $ (125.0) $ (800.9) $ (23.8) $ 0.5 $ (949.2) (1) Includes gains and losses on intra-entity foreign currency transactions. The intra-entity currency translation adjustment was $8.8 million and $7.9 million for the three months ended March 31, 2024 and 2023, respectively. |
Detail of Amounts Reclassified from AOCL | The following table provides detail of amounts reclassified from AOCL: Three Months Ended (In millions) 2024 2023 Location of Amount Defined benefit pension plans and other post-employment benefits: Net settlement cost $ — $ (0.2) Actuarial losses (1.4) (1.2) Total pre-tax amount (1.4) (1.4) Other expense, net Tax benefit 0.3 0.3 Net of tax (1.1) (1.1) Net gains on cash flow hedging derivatives: (1) Foreign currency forward contracts (0.2) 1.1 Cost of sales Total pre-tax amount (0.2) 1.1 Tax benefit (expense) 0.1 (0.2) Net of tax (0.1) 0.9 Total reclassifications for the period $ (1.2) $ (0.2) (1) These accumulated other comprehensive components are included in our derivative and hedging activities. See Note 14, “Derivatives and Hedging Activities,” for additional details. |
Other Expense, net (Tables)
Other Expense, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Details of Other Expense, net | The following table provides details of Other expense, net: Three Months Ended (In millions) 2024 2023 Net foreign exchange transaction gain (loss) $ 1.2 $ (4.9) Bank fee expense (1.0) (1.4) Pension cost other than service cost (1.8) (2.1) Foreign currency exchange loss due to highly inflationary economies (4.9) (2.6) Loss on debt redemption and refinancing activities — (4.9) Other income 6.6 2.6 Other expense (0.9) (1.7) Other expense, net $ (0.8) $ (15.0) |
Net Earnings Per Common Share (
Net Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Earnings Per Common Share | The following table shows the calculation of basic and diluted net earnings per common share: Three Months Ended (In millions, except per share amounts) 2024 2023 Basic Net Earnings Per Common Share: Numerator: Net earnings $ 82.0 $ 61.9 Distributed and allocated undistributed net earnings to unvested restricted stockholders — — Net earnings available to common stockholders $ 82.0 $ 61.9 Denominator: Weighted average number of common shares outstanding - basic 144.9 144.1 Basic net earnings per common share: Basic net earnings per common share $ 0.57 $ 0.43 Diluted Net Earnings Per Common Share: Numerator: Net earnings available to common stockholders $ 82.0 $ 61.9 Denominator: Weighted average number of common shares outstanding - basic 144.9 144.1 Effect of dilutive stock shares and units 0.5 0.7 Weighted average number of common shares outstanding - diluted under treasury stock 145.4 144.8 Diluted net earnings per common share $ 0.56 $ 0.43 |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Remeasurement loss | $ (4.9) | $ (2.6) |
Recently Adopted and Issued A_2
Recently Adopted and Issued Accounting Standards (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Payable [Line Items] | ||
Accounts payable | $ 811.8 | $ 764.6 |
Supply Chain Financing Program Participants | ||
Accounts Payable [Line Items] | ||
Accounts payable | $ 164.2 | $ 153 |
Revenue Recognition, Contract_3
Revenue Recognition, Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from performance obligations satisfied In previous periods | $ 1.1 | $ 0.8 |
Revenue recognized that was previously included in contract liability | $ 2.6 | $ 4.6 |
Revenue Recognition, Contract_4
Revenue Recognition, Contracts with Customers - Revenue from Contract With Customers Summarized by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | $ 1,321.5 | $ 1,342 |
Non-Topic 606 Revenue (Leasing: Sales-type and Operating) | 8.1 | 6.8 |
Total revenues | 1,329.6 | 1,348.8 |
Food | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 862.2 | 847.6 |
Non-Topic 606 Revenue (Leasing: Sales-type and Operating) | 6.2 | 5.5 |
Total revenues | 868.4 | 853.1 |
Protective | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 459.3 | 494.4 |
Non-Topic 606 Revenue (Leasing: Sales-type and Operating) | 1.9 | 1.3 |
Total revenues | 461.2 | 495.7 |
Americas | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 874.9 | 872.3 |
Americas | Food | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 578.6 | 566.1 |
Americas | Protective | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 296.3 | 306.2 |
EMEA | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 272.2 | 288.8 |
EMEA | Food | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 172.7 | 169.2 |
EMEA | Protective | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 99.5 | 119.6 |
APAC | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 174.4 | 180.9 |
APAC | Food | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | 110.9 | 112.3 |
APAC | Protective | ||
Revenue from External Customer [Line Items] | ||
Topic 606 Segment Revenue | $ 63.5 | $ 68.6 |
Revenue Recognition, Contract_5
Revenue Recognition, Contracts with Customers - Contracts with Customer Asset and Liability (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 0.4 | $ 0.4 |
Contract liabilities | $ 20.6 | $ 19.9 |
Revenue Recognition, Contract_6
Revenue Recognition, Contracts with Customers - Remaining Performance Obligation and Total Transaction Price (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Total transaction price | $ 20.6 | $ 19.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Total transaction price | $ 13.3 | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Total transaction price | $ 13.3 | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Total transaction price | $ 6.6 | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Total transaction price | $ 7.3 | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Leases - Summary of Lease Payme
Leases - Summary of Lease Payments Captured in Lease Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Leases [Abstract] | ||
Short-Term (12 months or less) | $ 8.7 | $ 8.5 |
Long-Term | 33.3 | 33.3 |
Lease receivables | $ 42 | $ 41.8 |
Sales-type and operating lease revenue , percentage of net trade sales (less than) | 1% | 1% |
Leases - Lease Obligations (Det
Leases - Lease Obligations (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Finance leases - ROU assets | $ 37.5 | $ 36 |
Finance leases - Accumulated depreciation | (15.3) | (14.9) |
Operating leases - ROU assets | 195.5 | 203.1 |
Operating leases - Accumulated depreciation | (115.2) | (116.6) |
Total lease assets | 102.5 | 107.6 |
Finance leases | (7.1) | (6.7) |
Operating leases | (27.4) | (29.2) |
Finance leases | (13.8) | (12.8) |
Operating leases | (61.8) | (66.7) |
Total lease liabilities | $ (110.1) | $ (115.4) |
Leases - Schedule of Lease Comm
Leases - Schedule of Lease Commitments (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Finance leases | |
Remainder of 2024 | $ 6.6 |
2025 | 6.1 |
2026 | 4.1 |
2027 | 1.9 |
2028 | 1 |
Thereafter | 8.1 |
Total lease payments | 27.8 |
Less: Interest | (6.9) |
Present value of lease liabilities | 20.9 |
Operating leases | |
Remainder of 2024 | 24.9 |
2025 | 27.5 |
2026 | 21.2 |
2027 | 12.1 |
2028 | 7.1 |
Thereafter | 10.3 |
Total lease payments | 103.1 |
Less: Interest | (13.9) |
Present value of lease liabilities | $ 89.2 |
Leases - Lease Cost and Other I
Leases - Lease Cost and Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Finance leases | ||
Amortization of ROU assets | $ 2 | $ 2.5 |
Interest on lease liabilities | 0.4 | 0.4 |
Operating leases | 9.4 | 9 |
Short-term lease cost | 0.2 | 0.6 |
Variable lease cost | 1.7 | 1.8 |
Total lease cost | 13.7 | 14.3 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows - finance leases | 0.9 | 1.1 |
Operating cash flows - operating leases | 9.8 | 9.1 |
Financing cash flows - finance leases | 1.8 | 2.3 |
ROU assets obtained in exchange for new lease liabilities | ||
ROU assets obtained in exchange for new finance lease liabilities | 3.3 | 5.9 |
ROU assets obtained in exchange for new operating lease liabilities | $ 2.3 | $ 20.8 |
Finance leases | ||
Remaining lease term (in years) | 5 years 10 months 24 days | 8 years 3 months 18 days |
Discount rate | 7.50% | 6.30% |
Operating leases | ||
Remaining lease term (in years) | 4 years 3 months 18 days | 4 years 4 months 24 days |
Discount rate | 6% | 5.30% |
Acquisitions - Acquisitions Nar
Acquisitions - Acquisitions Narrative (Details) - USD ($) | 3 Months Ended | 11 Months Ended | |||
Feb. 01, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,887,700,000 | $ 2,892,500,000 | |||
Food | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 1,234,300,000 | 1,235,200,000 | |||
Liquibox | |||||
Business Acquisition [Line Items] | |||||
Percentage of shares acquired | 100% | ||||
Acquisition purchase price paid | $ 1,169,200,000 | 1,160,000,000 | 1,167,100,000 | ||
Acquisition related costs | $ 11,900,000 | ||||
Goodwill | 728,700,000 | 699,500,000 | |||
Adjustment to consideration transferred | $ 3,500,000 | 2,100,000 | |||
Total assets | $ 615,000,000 | $ 604,200,000 | |||
Series of Individually Immaterial Business Acquisitions | Food | |||||
Business Acquisition [Line Items] | |||||
Acquisition purchase price paid | $ 14,900,000 | ||||
Goodwill | 7,900,000 | ||||
Total assets | $ 0 |
Acquisitions - Summary of Preli
Acquisitions - Summary of Preliminary Allocation of Purchase Price to Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 3 Months Ended | 11 Months Ended | |
Feb. 01, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Liabilities: | |||
Goodwill | $ 2,887.7 | $ 2,892.5 | |
Liquibox | |||
Business Acquisition [Line Items] | |||
Total consideration transferred | $ 1,169.2 | 1,160 | 1,167.1 |
Assets: | |||
Cash and cash equivalents | 21.2 | 21.2 | |
Trade receivables | 48.6 | 47.8 | |
Inventories | 61.6 | 58.8 | |
Prepaid expenses and other current assets | 15.8 | 14.1 | |
Property and equipment | 101.1 | 92.9 | |
Identifiable intangible assets | 342.1 | 346.3 | |
Operating lease right-of-use-assets | 15.1 | 15.1 | |
Other non-current assets | 9.5 | 8 | |
Total assets acquired | 615 | 604.2 | |
Liabilities: | |||
Accounts payable | 27 | 25.6 | |
Current portion of long-term debt | 0.1 | 0.1 | |
Current portion of operating lease liabilities | 3.7 | 3.7 | |
Other current liabilities | 28.4 | 31.2 | |
Long-term debt, less current portion | 5.1 | 5.1 | |
Long-term operating lease liabilities, less current portion | 11.4 | 11.4 | |
Deferred taxes | 92.2 | 57.1 | |
Other non-current liabilities | 6.6 | 2.4 | |
Total liabilities assumed | 174.5 | 136.6 | |
Net assets acquired | 440.5 | 467.6 | |
Goodwill | $ 728.7 | 699.5 | |
Measurement Period Adjustments | |||
Adjustment to consideration transferred | $ (3.5) | (2.1) | |
Trade receivables | (0.8) | ||
Inventories | (2.8) | ||
Prepaid expenses and other current assets | (1.7) | ||
Property and equipment | (8.2) | ||
Identifiable intangible assets | 4.2 | ||
Other non-current assets | (1.5) | ||
Total assets acquired | (10.8) | ||
Accounts payable | (1.4) | ||
Other current liabilities | 2.8 | ||
Deferred taxes | (35.1) | ||
Other non-current liabilities | (4.2) | ||
Total liabilities assumed | (37.9) | ||
Net assets acquired | 27.1 | ||
Goodwill | $ (29.2) |
Acquisitions - Schedule of Inta
Acquisitions - Schedule of Intangible Assets and Useful Lives (Details) - Liquibox - USD ($) $ in Millions | Dec. 31, 2023 | Feb. 01, 2023 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 346.3 | $ 342.1 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 186.4 | |
Useful life | 11 years | |
Trademarks and tradenames | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 26 | |
Useful life | 10 years | |
Software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 3.7 | |
Useful life | 2 years | |
Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets | $ 130.2 | |
Useful life | 12 years |
Acquisitions - Net Sales and Lo
Acquisitions - Net Sales and Loss Since Acquisition (Details) - Liquibox $ in Millions | 2 Months Ended |
Mar. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Net sales | $ 57.3 |
Net loss | $ (5.4) |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - Liquibox $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Net sales | $ 1,374.4 |
Net earnings | $ 70 |
Segments - Additional Informati
Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segments - Net Sales and Adjust
Segments - Net Sales and Adjusted EBITDA by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Consolidated Net sales | $ 1,329.6 | $ 1,348.8 |
Segment Adjusted EBITDA: | 279.1 | 275.2 |
Food | ||
Segment Reporting Information [Line Items] | ||
Consolidated Net sales | $ 868.4 | $ 853.1 |
Food and Protective Adjusted EBITDA Margin | 21.80% | 22.80% |
Food | Product Concentration Risk | Net Sales | ||
Segment Reporting Information [Line Items] | ||
As a % of Consolidated net sales | 65.30% | 63.20% |
Food | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Consolidated Net sales | $ 868.4 | $ 853.1 |
Segment Adjusted EBITDA: | 189.6 | 194.8 |
Protective | ||
Segment Reporting Information [Line Items] | ||
Consolidated Net sales | $ 461.2 | $ 495.7 |
Food and Protective Adjusted EBITDA Margin | 19.40% | 16.20% |
Protective | Product Concentration Risk | Net Sales | ||
Segment Reporting Information [Line Items] | ||
As a % of Consolidated net sales | 34.70% | 36.80% |
Protective | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Consolidated Net sales | $ 461.2 | $ 495.7 |
Segment Adjusted EBITDA: | $ 89.5 | $ 80.4 |
Segments - Reconciliation of Ne
Segments - Reconciliation of Net Earnings to Total Company Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | $ 279.1 | $ 275.2 |
Interest expense, net | (65.1) | (57.8) |
Depreciation and amortization, net of adjustments | (60.9) | (68.9) |
Special items | ||
Restructuring charges | (15.5) | 1.2 |
Other restructuring associated costs | (6.8) | 0.2 |
Foreign currency exchange loss due to highly inflationary economies | (4.9) | (2.6) |
Loss on debt redemption and refinancing activities | 0 | (4.9) |
Contract terminations | (0.1) | 0 |
Charges related to acquisition and divestiture activity | 1.9 | (16.9) |
Other Special Items | (0.5) | (7.5) |
Pre-tax impact of Special Items | (33.2) | (43.9) |
Earnings before income tax provision | 119.1 | 96.7 |
Liquibox | ||
Special items | ||
Liquibox intangible amortization | (7.5) | (5) |
Liquibox inventory step-up expense | 0 | (8.4) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | (0.8) | (7.9) |
Food | ||
Special items | ||
Restructuring charges | (8.6) | 0.9 |
Food | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | 189.6 | 194.8 |
Protective | ||
Special items | ||
Restructuring charges | (6.9) | 0.3 |
Protective | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment Adjusted EBITDA | $ 89.5 | $ 80.4 |
Segments - Reconciliation of _2
Segments - Reconciliation of Net Earnings to Total Company Adjusted EBITDA-Depreciation and Restructuring Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Depreciation and Amortization [Abstract] | ||
Total Company depreciation and amortization | $ 68.4 | $ 73.9 |
Depreciation and amortization | 60.9 | 68.9 |
Share-based incentive compensation | 8.7 | 18 |
Total Company restructuring charges | 15.5 | (1.2) |
Liquibox | ||
Depreciation and Amortization [Abstract] | ||
Liquibox intangible amortization | (7.5) | (5) |
Food | ||
Depreciation and Amortization [Abstract] | ||
Total Company restructuring charges | 8.6 | (0.9) |
Food | Operating Segments | ||
Depreciation and Amortization [Abstract] | ||
Total Company depreciation and amortization | 46.9 | 46.7 |
Protective | ||
Depreciation and Amortization [Abstract] | ||
Total Company restructuring charges | 6.9 | (0.3) |
Protective | Operating Segments | ||
Depreciation and Amortization [Abstract] | ||
Total Company depreciation and amortization | $ 21.5 | $ 27.2 |
Segments - Assets by Reportable
Segments - Assets by Reportable Segments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Assets not allocated: | |||
Cash and cash equivalents | $ 352.8 | $ 346.1 | $ 456.1 |
Income tax receivables | 27.6 | 44.9 | |
Other receivables | 92.2 | 94.2 | |
Advances and deposits | 69.7 | 72.8 | |
Deferred taxes | 130.7 | 130.8 | |
Total assets | 7,199.3 | 7,200.6 | |
Assets allocated to segments: | |||
Assets allocated to segments: | |||
Assets allocated to segments | 6,059.2 | 6,049.8 | |
Assets allocated to segments: | Food | |||
Assets allocated to segments: | |||
Assets allocated to segments | 3,396.6 | 3,386.4 | |
Assets allocated to segments: | Protective | |||
Assets allocated to segments: | |||
Assets allocated to segments | 2,662.6 | 2,663.4 | |
Assets not allocated: | |||
Assets not allocated: | |||
Cash and cash equivalents | 352.8 | 346.1 | |
Income tax receivables | 27.6 | 44.9 | |
Other receivables | 92.2 | 94.2 | |
Advances and deposits | 69.7 | 72.8 | |
Deferred taxes | 130.7 | 130.8 | |
Other | 467.1 | 462 | |
Total assets | $ 7,199.3 | $ 7,200.6 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 162.2 | $ 165.3 |
Work in process | 180.1 | 178.5 |
Finished goods | 447.9 | 430.5 |
Total | $ 790.2 | $ 774.3 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment, net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 46.7 | $ 47.5 |
Buildings | 837.8 | 835.8 |
Machinery and equipment | 2,807.5 | 2,811.5 |
Other property and equipment | 141.9 | 142 |
Construction-in-progress | 230 | 227 |
Property and equipment, gross | 4,063.9 | 4,063.8 |
Accumulated depreciation and amortization | (2,652.7) | (2,647.4) |
Property and equipment, net | $ 1,411.2 | $ 1,416.4 |
Property and Equipment, net - I
Property and Equipment, net - Interest Cost Capitalized and Depreciation and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Interest cost capitalized | $ 3.3 | $ 2.5 |
Depreciation and amortization expense | 44.8 | 40.7 |
Amortization of finance lease ROU assets | $ 2 | $ 2.5 |
Goodwill and Identifiable Int_3
Goodwill and Identifiable Intangible Assets, net - Summary of Goodwill Balances by Reportable Segment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | ||
Gross Carrying Value | $ 3,082,400,000 | |
Accumulated amortization | 0 | $ (189,900,000) |
Carrying Value | 2,892,500,000 | |
Currency translation | (4,800,000) | |
Carrying Value | 2,887,700,000 | |
Food | ||
Goodwill [Roll Forward] | ||
Gross Carrying Value | 1,284,300,000 | |
Accumulated amortization | (49,100,000) | |
Carrying Value | 1,235,200,000 | |
Currency translation | (900,000) | |
Carrying Value | 1,234,300,000 | |
Protective | ||
Goodwill [Roll Forward] | ||
Gross Carrying Value | 1,798,100,000 | |
Accumulated amortization | $ (140,800,000) | |
Carrying Value | 1,657,300,000 | |
Currency translation | (3,900,000) | |
Carrying Value | $ 1,653,400,000 |
Goodwill and Identifiable Int_4
Goodwill and Identifiable Intangible Assets, net - Summary of Identifiable Intangible Assets, net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 702.9 | $ 701.9 |
Accumulated Amortization | (286.2) | (271.8) |
Net | 416.7 | 430.1 |
Total identifiable intangible assets, net | ||
Gross Carrying Value | 711.8 | 710.8 |
Net | 425.6 | 439 |
Trademarks and tradenames with indefinite lives | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and tradenames with indefinite lives | 8.9 | 8.9 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 286.5 | 287.7 |
Accumulated Amortization | (74.2) | (69.3) |
Net | 212.3 | 218.4 |
Trademarks and tradenames with indefinite lives | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 57 | 57 |
Accumulated Amortization | (20.6) | (19.4) |
Net | 36.4 | 37.6 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 151.2 | 148.2 |
Accumulated Amortization | (117.3) | (112.8) |
Net | 33.9 | 35.4 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 196.8 | 197.5 |
Accumulated Amortization | (63.8) | (60.1) |
Net | 133 | 137.4 |
Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 11.4 | 11.5 |
Accumulated Amortization | (10.3) | (10.2) |
Net | $ 1.1 | $ 1.3 |
Goodwill and Identifiable Int_5
Goodwill and Identifiable Intangible Assets, net - Remaining Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Year | ||
Remainder of 2024 | $ 47.8 | |
2025 | 57.2 | |
2026 | 46.1 | |
2027 | 39.7 | |
2028 | 39 | |
Thereafter | 186.9 | |
Net | $ 416.7 | $ 430.1 |
Accounts Receivable Securitiz_2
Accounts Receivable Securitization Programs (Details) € in Millions | 3 Months Ended | ||||
Mar. 31, 2024 USD ($) bank | Mar. 31, 2023 USD ($) | Mar. 31, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | |
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Outstanding borrowings | $ 134,600,000 | $ 140,700,000 | |||
Prepaid expenses and other current assets | 198,800,000 | 188,400,000 | |||
Interest paid | 65,100,000 | $ 57,800,000 | |||
Line of Credit | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Outstanding borrowings | 134,600,000 | 140,700,000 | |||
U.S. Accounts Receivable Securitization Program | Line of Credit | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Outstanding borrowings | $ 50,000,000 | 46,500,000 | |||
U.S. Accounts Receivable Securitization Program | U.S. Program | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Number of banks involved in sale of fractional ownership interest of accounts receivable | bank | 2 | ||||
Level of eligible assets available under accounts receivable securitization program | $ 50,000,000 | ||||
Amounts available under program | 50,000,000 | ||||
U.S. Accounts Receivable Securitization Program | U.S. Program | Maximum | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Maximum purchase limit for receivable interests under accounts receivable securitization program | 50,000,000 | ||||
European Accounts Receivable Securitization Program | Trade Accounts Receivable | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Prepaid expenses and other current assets | 81,500,000 | € 75.6 | 86,700,000 | € 78.4 | |
European Accounts Receivable Securitization Program | Line of Credit | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Outstanding borrowings | $ 81,500,000 | 75.6 | $ 86,700,000 | € 78.4 | |
European Accounts Receivable Securitization Program | European Program | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Number of banks involved in sale of fractional ownership interest of accounts receivable | bank | 2 | ||||
Amounts available under program | $ 82,000,000 | 76 | |||
European Accounts Receivable Securitization Program | European Program | Maximum | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Maximum purchase limit for receivable interests under accounts receivable securitization program | 86,300,000 | € 80 | |||
Accounts Receivable Securitization Programs | |||||
Qualitative And Quantitative Information Transferors Continuing Involvement [Line Items] | |||||
Interest paid | $ 1,800,000 | $ 900,000 |
Accounts Receivable Factoring_2
Accounts Receivable Factoring Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Transfers and Servicing [Abstract] | ||
Gross amounts factored under program | $ 179.8 | $ 194.5 |
Fees associated with transfer of receivables | $ 3 | $ 3 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Aug. 07, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 15.5 | $ (1.2) | ||
Other associated costs | 6.8 | (0.2) | ||
Contract terminations | (0.1) | $ 0 | ||
Restructuring accrual expected to pay | 28.8 | $ 23.1 | ||
Restructuring accrual | 29.7 | $ 24.3 | ||
Food | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring accrual | 18.1 | |||
Protective | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring accrual | 11.6 | |||
CTO2 Grow Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring program term (in years) | 3 years | |||
Restructuring charges | 15.3 | |||
Other associated costs | 6.7 | |||
Contract terminations | (0.1) | |||
CTO2 Grow Program | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected spend | $ 140 | |||
CTO2 Grow Program | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expected spend | $ 160 | |||
Restructuring Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring accrual expected to pay | 28.8 | |||
Restructuring accrual remaining | $ 0.9 |
Restructuring Activities - Sche
Restructuring Activities - Schedule of CTO2Grow Program Restructuring Spend Estimated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Total Restructuring Program Range | ||
Other associated costs | $ 6.8 | $ (0.2) |
Contract terminations | (0.1) | 0 |
Capital expenditures | 0 | $ 0 |
CTO2 Grow Program | ||
Less Program Activity to Date | ||
Costs of reduction in headcount as a result of reorganization | (32) | |
Other associated costs | (8) | |
Contract terminations | (15) | |
Total cash expense | (55) | |
Capital expenditures | 0 | |
Total estimated cash cost | (55) | |
Total estimated non-cash expense | (33) | |
Total estimated expense | (88) | |
CTO2 Grow Program | Minimum | ||
Total Restructuring Program Range | ||
Costs of reduction in headcount as a result of reorganization | 90 | |
Other associated costs | 20 | |
Contract terminations | 25 | |
Total cash expense | 135 | |
Capital expenditures | 5 | |
Total estimated cash cost | 140 | |
Total estimated non-cash expense | 33 | |
Total estimated expense | 168 | |
Remaining Restructuring | ||
Costs of reduction in headcount as a result of reorganization | 58 | |
Other associated costs | 12 | |
Contract terminations | 10 | |
Total cash expense | 80 | |
Capital expenditures | 5 | |
Total estimated cash cost | 85 | |
Total estimated non-cash expense | 0 | |
Total estimated expense | 80 | |
CTO2 Grow Program | Maximum | ||
Total Restructuring Program Range | ||
Costs of reduction in headcount as a result of reorganization | 95 | |
Other associated costs | 25 | |
Contract terminations | 30 | |
Total cash expense | 150 | |
Capital expenditures | 10 | |
Total estimated cash cost | 160 | |
Total estimated non-cash expense | 33 | |
Total estimated expense | 183 | |
Remaining Restructuring | ||
Costs of reduction in headcount as a result of reorganization | 63 | |
Other associated costs | 17 | |
Contract terminations | 15 | |
Total cash expense | 95 | |
Capital expenditures | 10 | |
Total estimated cash cost | 105 | |
Total estimated non-cash expense | 0 | |
Total estimated expense | $ 95 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | ||
Other associated costs | $ 6.8 | $ (0.2) |
Contract terminations | (0.1) | 0 |
Restructuring charges | 15.5 | (1.2) |
Total | 22.2 | (1.4) |
Capital expenditures | $ 0 | $ 0 |
Restructuring Activities - Rest
Restructuring Activities - Restructuring Accrual, Spending and Other Activity and Accrual Balance Remaining (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring accrual at beginning of period | $ 24.3 |
Headcount accrual and accrual adjustments | 15.5 |
Cash payment during the 2024 | (9.8) |
Effect of changes in foreign currency exchange rates | (0.3) |
Restructuring accrual at end of period | 29.7 |
Lease contract terminations | 89.2 |
Contract Termination | |
Restructuring Reserve [Roll Forward] | |
Lease contract terminations | $ 3.6 |
Debt and Credit Facilities - To
Debt and Credit Facilities - Total Debt Outstanding (Details) € in Millions | Mar. 31, 2024 USD ($) | Mar. 31, 2024 EUR (€) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) |
Debt Instrument [Line Items] | ||||
Short-term borrowings | $ 134,600,000 | $ 140,700,000 | ||
Current portion of long-term debt | 43,500,000 | 35,700,000 | ||
Total current debt | 178,100,000 | 176,400,000 | ||
Other | 20,800,000 | 20,100,000 | ||
Total long-term debt, less current portion | 4,484,200,000 | 4,513,900,000 | ||
Total debt | 4,662,300,000 | 4,690,300,000 | ||
Finance lease liability, current | 7,100,000 | 6,700,000 | ||
Finance lease liability, noncurrent | 13,800,000 | 12,800,000 | ||
Unamortized discounts ands issuance costs | $ 34,700,000 | $ 36,900,000 | ||
Short-term debt, weighted average interest rate | 5.40% | 5.40% | 5.30% | 5.30% |
Long-term debt, weighted average interest rate | 5.60% | 5.60% | 5.60% | 5.60% |
Senior Notes due September 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.50% | 5.50% | ||
Senior notes | $ 399,300,000 | $ 399,100,000 | ||
Senior Secured Notes due October 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 1.573% | 1.573% | ||
Senior notes | $ 597,300,000 | 597,000,000 | ||
Senior Notes due December 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 4% | 4% | ||
Senior notes | $ 422,700,000 | 422,500,000 | ||
Senior Notes due February 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 6.125% | 6.125% | ||
Senior notes | $ 765,300,000 | 764,800,000 | ||
Senior Notes due April 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5% | 5% | ||
Senior notes | $ 421,800,000 | 421,700,000 | ||
Senior Notes due February 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 7.25% | 7.25% | ||
Senior notes | $ 421,000,000 | 420,900,000 | ||
Senior Notes due July 2033 | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 6.875% | 6.875% | ||
Senior notes | $ 446,700,000 | 446,700,000 | ||
Term Loan A due March 2027 | ||||
Debt Instrument [Line Items] | ||||
Term loans | 989,300,000 | 1,021,100,000 | ||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | 134,600,000 | 140,700,000 | ||
Line of Credit | European Accounts Receivable Securitization Program | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | 81,500,000 | € 75.6 | 86,700,000 | € 78.4 |
Line of Credit | U.S. Accounts Receivable Securitization Program | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | 50,000,000 | 46,500,000 | ||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | $ 7,500,000 | |||
Line of Credit | Revolving Credit Facility, Various | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | $ 3,100,000 |
Debt and Credit Facilities - Su
Debt and Credit Facilities - Summary of Available Lines of Credit (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | ||
Used lines of credit | $ 134.6 | $ 140.7 |
Unused lines of credit | 1,134.9 | 1,134.7 |
Total available lines of credit | 1,269.5 | $ 1,275.4 |
Committed Line of Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Total available lines of credit | $ 1,132 |
Debt and Credit Facilities - Am
Debt and Credit Facilities - Amended and Restated Senior Secured Credit Facility (Details) $ in Millions | Feb. 01, 2023 USD ($) |
Fourth Amended and Restated Credit Agreement | |
Line of Credit Facility [Line Items] | |
Payments of lender and third-party fees for debt modification | $ 11 |
Debt and Credit Facilities - Se
Debt and Credit Facilities - Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Nov. 20, 2023 | Jan. 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 27, 2023 | |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 0 | $ 4.9 | |||||
Senior Notes due February 2031 | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 7.25% | ||||||
Senior Notes due February 2031 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument aggregate principal | $ 425 | ||||||
Debt interest rate | 7.25% | ||||||
Debt issuance costs capitalized | $ 4.2 | ||||||
Redemption price, percentage | 100% | ||||||
Redemption price, percentage of principal amount redeemed (up to) | 40% | ||||||
Senior Notes due February 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 6.125% | ||||||
Senior Notes due February 2028 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument aggregate principal | $ 775 | ||||||
Debt interest rate | 6.125% | ||||||
Debt issuance costs capitalized | $ 12.2 | ||||||
Redemption price, percentage | 100% | ||||||
Redemption price, percentage of principal amount redeemed (up to) | 40% | ||||||
5.125% Senior Notes Due December 2024 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 5.125% | ||||||
Debt repurchase amount | $ 433.7 | ||||||
Repurchased principal amount | 425 | ||||||
Debt premium | 7.5 | ||||||
Accrued interest | $ 1.2 | ||||||
Loss on extinguishment of debt | $ (8.3) | ||||||
Accelerated amortization of non-lender fees | $ 0.8 | ||||||
Senior Notes due September 2023 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt interest rate | 4.50% | ||||||
Debt premium | $ 4.5 | ||||||
Loss on extinguishment of debt | (4.9) | ||||||
Accelerated amortization of non-lender fees | $ 0.4 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 USD ($) derivative | Mar. 31, 2023 USD ($) | Dec. 31, 2023 derivative | Jun. 30, 2015 EUR (€) | |
Derivative [Line Items] | ||||
Derivative interest income | $ 3.5 | $ 4.4 | ||
Foreign currency forward contracts | Designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Maximum original maturity of foreign currency forward contracts | 12 months | |||
Net unrealized after tax gain (loss) related to cash flow hedging activities | $ 1.4 | 1.1 | ||
Estimate of net unrealized derivative gains included in AOCI to be reclassified into earnings in next twelve months | $ 0.2 | |||
Foreign currency forward contracts | Derivatives not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Maximum original maturity of foreign currency forward contracts | 12 months | |||
Derivative interest income | $ 3.7 | 3.3 | ||
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Number of derivative instruments outstanding | derivative | 0 | 0 | ||
EUR - Denominated debt | Net investment hedge | 4.50% Senior Notes due September 2023 | ||||
Derivative [Line Items] | ||||
Debt instrument aggregate principal | € | € 400,000,000 | |||
Debt interest rate | 4.50% | |||
Cross-currency swaps | ||||
Derivative [Line Items] | ||||
Notional amount of outstanding derivative | 432.8 | |||
Derivative interest income | $ 0.8 | $ 0.5 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | $ 6 | $ 5.1 |
Total Derivative Liabilities | (10.4) | (24.2) |
Net Derivatives | (4.4) | (19.1) |
Foreign currency forward contracts | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | 6 | 5.1 |
Total Derivative Liabilities | (1.6) | (4.3) |
Cross-currency swaps | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Liabilities | (8.8) | (19.9) |
Net investment hedge | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | 0 | 0 |
Total Derivative Liabilities | (8.8) | (19.9) |
Net Derivatives | (8.8) | (19.9) |
Net investment hedge | Foreign currency forward contracts | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | 0 | 0 |
Total Derivative Liabilities | 0 | 0 |
Net investment hedge | Cross-currency swaps | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Liabilities | (8.8) | (19.9) |
Designated as hedging instruments | Cash Flow Hedge | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | 1 | 0.2 |
Total Derivative Liabilities | (0.5) | (2.7) |
Net Derivatives | 0.5 | (2.5) |
Designated as hedging instruments | Cash Flow Hedge | Foreign currency forward contracts | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | 1 | 0.2 |
Total Derivative Liabilities | (0.5) | (2.7) |
Designated as hedging instruments | Cash Flow Hedge | Cross-currency swaps | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Liabilities | 0 | 0 |
Non-Designated as Hedging Instruments | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | 5 | 4.9 |
Total Derivative Liabilities | (1.1) | (1.6) |
Net Derivatives | 3.9 | 3.3 |
Non-Designated as Hedging Instruments | Foreign currency forward contracts | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Assets | 5 | 4.9 |
Total Derivative Liabilities | (1.1) | (1.6) |
Non-Designated as Hedging Instruments | Cross-currency swaps | ||
Derivatives not designated as hedging instruments: | ||
Total Derivative Liabilities | $ 0 | $ 0 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Offsetting Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Offsetting Assets [Line Items] | ||
Gross position | $ 6 | $ 5.1 |
Net amounts recognized on the Condensed Consolidated Balance Sheets | 5.1 | 4 |
Other Current Assets | ||
Offsetting Assets [Line Items] | ||
Gross position | 6 | 5.1 |
Impact of master netting agreements | $ (0.9) | $ (1.1) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Offsetting Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Offsetting Liabilities [Line Items] | ||
Gross position | $ (10.4) | $ (24.2) |
Other Current Liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross position | (1.6) | (4.3) |
Impact of master netting agreements | 0.9 | 1.1 |
Net amounts recognized on the Condensed Consolidated Balance Sheets | (0.7) | (3.2) |
Other Noncurrent Liabilities | ||
Offsetting Liabilities [Line Items] | ||
Gross position | (8.8) | (19.9) |
Impact of master netting agreements | 0 | 0 |
Net amounts recognized on the Condensed Consolidated Balance Sheets | $ (8.8) | $ (19.9) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Effect of Derivative Instruments on Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Loss) Gain Recognized in Earnings on Derivatives | $ 3.5 | $ 4.4 |
Derivatives not designated as hedging instruments | Foreign currency forward contracts | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Loss) Gain Recognized in Earnings on Derivatives | 3.7 | 3.3 |
Cash Flow Hedge | Derivatives designated as hedging instruments | Foreign currency forward contracts | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of (Loss) Gain Recognized in Earnings on Derivatives | $ (0.2) | $ 1.1 |
Fair Value Measurements, Equi_3
Fair Value Measurements, Equity Investments and Other Financial Instruments - Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 46.4 | $ 40.2 |
Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | 4.4 | 0.8 |
Cross-currency swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | (8.8) | (19.9) |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 46.4 | 40.2 |
Level 1 | Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | 0 | 0 |
Level 1 | Cross-currency swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | 0 | 0 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | 4.4 | 0.8 |
Level 2 | Cross-currency swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | (8.8) | (19.9) |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | Foreign currency forward contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | 0 | 0 |
Level 3 | Cross-currency swaps | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative financial and hedging instruments net asset (liability) | $ 0 | $ 0 |
Fair Value Measurements, Equi_4
Fair Value Measurements, Equity Investments and Other Financial Instruments - Schedule of Equity Investment Without Readily Determinable Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Equity Securities without Readily Determinable Fair Value [Roll Forward] | ||
Carrying value at the beginning of period | $ 13.8 | $ 13.3 |
Purchases | 0 | 0 |
Impairments or downward adjustments | 0 | 0 |
Upward adjustments | 0 | 0 |
Currency translation on investments | (0.3) | 0.5 |
Carrying value at the end of period | $ 13.5 | $ 13.8 |
Fair Value Measurements, Equi_5
Fair Value Measurements, Equity Investments and Other Financial Instruments - Equity Investment Without Readily Determinable Fair Value Narrative (Details) - Common Stock - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cumulative upward adjustment | $ 21.7 | |
Cumulative downward adjustment | $ 31.6 |
Fair Value Measurements, Equi_6
Fair Value Measurements, Equity Investments and Other Financial Instruments - Carrying Amounts and Estimated Fair Values of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Senior Notes due September 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 5.50% | |
Senior Secured Notes due October 2026 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 1.573% | |
Senior Notes due December 2027 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 4% | |
Senior Notes due February 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 6.125% | |
Senior Notes due April 2029 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 5% | |
Senior Notes due February 2031 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 7.25% | |
Senior Notes due July 2033 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt interest rate | 6.875% | |
Carrying Amount | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other foreign borrowings | $ 84.6 | $ 94.1 |
Other domestic borrowings | 57.1 | 65.9 |
Total debt | 4,641.5 | 4,682.8 |
Carrying Amount | Senior Notes due September 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 399.3 | 399.1 |
Carrying Amount | Senior Secured Notes due October 2026 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 597.3 | 597 |
Carrying Amount | Senior Notes due December 2027 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 422.7 | 422.5 |
Carrying Amount | Senior Notes due February 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 765.3 | 764.8 |
Carrying Amount | Senior Notes due April 2029 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 421.8 | 421.7 |
Carrying Amount | Senior Notes due February 2031 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 421 | 420.9 |
Carrying Amount | Senior Notes due July 2033 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 446.7 | 446.7 |
Carrying Amount | Term Loan A due March 2027 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 1,025.7 | 1,050.1 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other foreign borrowings | 84.6 | 94.1 |
Other domestic borrowings | 57.1 | 65 |
Total debt | 4,599.1 | 4,667.7 |
Fair Value | Senior Notes due September 2025 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 398.6 | 400.7 |
Fair Value | Senior Secured Notes due October 2026 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 541.7 | 539.5 |
Fair Value | Senior Notes due December 2027 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 397.9 | 399.4 |
Fair Value | Senior Notes due February 2028 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 775.7 | 780.8 |
Fair Value | Senior Notes due April 2029 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 407.4 | 410.8 |
Fair Value | Senior Notes due February 2031 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 441.9 | 450.3 |
Fair Value | Senior Notes due July 2033 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | 468.5 | 477 |
Fair Value | Term Loan A due March 2027 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 1,025.7 | $ 1,050.1 |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans - Components of Net Periodic Benefit Cost (Income) for Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Components of net periodic benefit cost: | ||
Service cost | $ 0.9 | $ 0.8 |
Interest cost | 6.7 | 7 |
Expected return on plan assets | (7.5) | (7.1) |
Amortization of net prior service cost | 0.1 | 0.1 |
Amortization of net actuarial loss | 1.4 | 1.2 |
Net periodic benefit cost | 1.6 | 2 |
Settlement cost | 0 | 0.2 |
Total benefit cost | 1.6 | 2.2 |
U.S. | ||
Components of net periodic benefit cost: | ||
Service cost | 0 | 0 |
Interest cost | 1.6 | 1.8 |
Expected return on plan assets | (1.7) | (1.8) |
Amortization of net prior service cost | 0 | 0 |
Amortization of net actuarial loss | 0.4 | 0.4 |
Net periodic benefit cost | 0.3 | 0.4 |
Settlement cost | 0 | 0 |
Total benefit cost | 0.3 | 0.4 |
International | ||
Components of net periodic benefit cost: | ||
Service cost | 0.9 | 0.8 |
Interest cost | 5.1 | 5.2 |
Expected return on plan assets | (5.8) | (5.3) |
Amortization of net prior service cost | 0.1 | 0.1 |
Amortization of net actuarial loss | 1 | 0.8 |
Net periodic benefit cost | 1.3 | 1.6 |
Settlement cost | 0 | 0.2 |
Total benefit cost | $ 1.3 | $ 1.8 |
Defined Benefit Pension Plans_4
Defined Benefit Pension Plans and Other Post-Employment Benefit Plans - Net Period Benefit Costs (Income) for Post-retirement Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Components of net periodic benefit cost: | ||
Interest cost | $ 6.7 | $ 7 |
Amortization of net prior service credit and net actuarial gain | 0.1 | 0.1 |
Net periodic benefit cost | 1.6 | 2 |
Other post-retirement employee benefit plans | ||
Components of net periodic benefit cost: | ||
Interest cost | 0.4 | 0.4 |
Amortization of net prior service credit and net actuarial gain | (0.1) | (0.1) |
Net periodic benefit cost | $ 0.3 | $ 0.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percent | 30% | 35% |
Increase in unrecognized tax benefits | $ 4.6 | $ 6.8 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Aug. 02, 2021 | May 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 1,000 | |||
Stock repurchase program, remaining authorizations | $ 536.5 | |||
Number of shares repurchased (in shares) | 0 | 1,529,575 | ||
Value of shares repurchased | $ 79.8 | |||
Shares acquired, average price per share (in usd per share) | $ 52.20 | |||
New Share Repurchase Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 1,000 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Feb. 21, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | |||
Quarterly cash dividend (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 |
Amount of quarterly cash dividend declared | $ 29.1 |
Stockholders' Equity - Share-ba
Stockholders' Equity - Share-based Compensation Omnibus Incentive Plan (Details) - 2014 Omnibus Incentive Plan - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2018 | May 22, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum number of shares of common stock authorized (in shares) | 4,250,000 | ||
Additional shares added by amended plan (in shares) | 2,999,054 | 2,199,114 |
Stockholders' Equity - Total Sh
Stockholders' Equity - Total Share-based Incentive Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Total share-based incentive compensation expense | $ 8.7 | $ 18 |
Stockholders' Equity - PSU Awar
Stockholders' Equity - PSU Awards (Details) - shares | 1 Months Ended | 3 Months Ended | ||
Feb. 29, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Period in the beginning of each year to award PSU's | 90 days | |||
Cumulative average growth rate period | 3 years | |||
Three Year Performance Share Unit Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
PSU awards performance period | 3 years | |||
2024 Three Year Performance Share Units Award | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
PSU awards performance period | 3 years | |||
Weighted average return on total shareholders, EBITDA | 50% | |||
Weighted average net sales compound average growth rate on capital | 50% | |||
Achievement of each performance metric upward or downward, percentage adjustment (up to), based on results of total shareholder return modifier | 25% | |||
Shareholder return in the top quartile of the comparator group increases overall achievement of performance metrics, percentage | 25% | |||
Shareholder return in the top quartile of the comparator group decrease overall achievement of performance metrics, percentage | 25% | |||
2024 Three Year Performance Share Units Award | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares to be issued as percentage of target shares under performance incentive plan | 0% | |||
2024 Three Year Performance Share Units Award | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares to be issued as percentage of target shares under performance incentive plan | 250% | |||
2021- 2023 Three Year Performance Share Units Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares to be issued as percentage of target shares under performance incentive plan | 75% | |||
Shares to be issued under performance incentive plan (in shares) | 152,934 | |||
Shares withheld for tax (in shares) | 55,607 | |||
Shares designated as cash settlement awards (in shares) | 732 | |||
Shares issued (in shares) | 96,595 |
Stockholders' Equity - Number o
Stockholders' Equity - Number of PSUs Granted and Grant Date Fair Value of PSUs (Details) - $ / shares | Mar. 01, 2024 | Feb. 21, 2024 |
Adjusted EBITDA CAGR | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units granted (in shares) | 22,692 | 50,340 |
Fair value on grant date (per unit) (in usd per share) | $ 39.49 | $ 41.09 |
ROIC | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of units granted (in shares) | 22,692 | 50,340 |
Fair value on grant date (per unit) (in usd per share) | $ 39.49 | $ 41.09 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Assumptions Used to Calculate the Grant Date Fair Value (Details) - Performance Shares | Mar. 01, 2024 | Feb. 21, 2024 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected price volatility | 31.90% | 31.70% |
Risk-free interest rate | 4.30% | 4.40% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Details of Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 549.5 | |
Other comprehensive income (loss) before reclassifications | (30.9) | $ 29.4 |
Less: amounts reclassified from accumulated other comprehensive loss | 1.2 | 0.2 |
Other comprehensive (loss) income | (29.7) | 29.6 |
Ending balance | 598.3 | |
Unrecognized Pension Items | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (146.4) | (126.3) |
Other comprehensive income (loss) before reclassifications | (0.2) | 0.2 |
Less: amounts reclassified from accumulated other comprehensive loss | 1.1 | 1.1 |
Other comprehensive (loss) income | 0.9 | 1.3 |
Ending balance | (145.5) | (125) |
Cumulative Translation Adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (770.6) | (837.5) |
Other comprehensive income (loss) before reclassifications | (40.4) | 36.6 |
Less: amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive (loss) income | (40.4) | 36.6 |
Ending balance | (811) | (800.9) |
Cumulative Translation Adjustment | Intra-entity transactions | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Intra-entity currency translation adjustments in AOCI | 8.8 | 7.9 |
Unrecognized Losses/Gains on Derivative Instruments | Net investment hedge | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (38.1) | (18.3) |
Other comprehensive income (loss) before reclassifications | 8.4 | (5.5) |
Less: amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Other comprehensive (loss) income | 8.4 | (5.5) |
Ending balance | (29.7) | (23.8) |
Unrecognized Losses/Gains on Derivative Instruments | Cash Flow Hedge | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (0.4) | 3.3 |
Other comprehensive income (loss) before reclassifications | 1.3 | (1.9) |
Less: amounts reclassified from accumulated other comprehensive loss | 0.1 | (0.9) |
Other comprehensive (loss) income | 1.4 | (2.8) |
Ending balance | 1 | 0.5 |
Accumulated Other Comprehensive Loss, Net of Taxes | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (955.5) | (978.8) |
Ending balance | $ (985.2) | $ (949.2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Details of Amount Reclassified from AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other expense, net | $ (0.8) | $ (15) |
Cost of sales | 928.8 | 943.7 |
Total pre-tax amount | (119.1) | (96.7) |
Tax benefit (expense) | 35.7 | 33.8 |
Net of tax | (83.4) | (62.9) |
Total reclassifications for the period | (1.2) | (0.2) |
Defined benefit pension plans and other post-employment benefits | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Total reclassifications for the period | (1.1) | (1.1) |
Reclassification out of Accumulated Other Comprehensive Income | Net settlement cost | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other expense, net | 0 | (0.2) |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial losses | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Other expense, net | (1.4) | (1.2) |
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension plans and other post-employment benefits | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Total pre-tax amount | (1.4) | (1.4) |
Tax benefit (expense) | 0.3 | 0.3 |
Net of tax | (1.1) | (1.1) |
Reclassification out of Accumulated Other Comprehensive Income | Net gains on cash flow hedging derivatives | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Total pre-tax amount | (0.2) | 1.1 |
Tax benefit (expense) | 0.1 | (0.2) |
Net of tax | (0.1) | 0.9 |
Reclassification out of Accumulated Other Comprehensive Income | Net gains on cash flow hedging derivatives | Foreign currency forward contracts | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Cost of sales | $ (0.2) | $ 1.1 |
Other Expense, net (Details)
Other Expense, net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Net foreign exchange transaction gain (loss) | $ 1.2 | $ (4.9) |
Bank fee expense | (1) | (1.4) |
Pension cost other than service cost | (1.8) | (2.1) |
Foreign currency exchange loss due to highly inflationary economies | (4.9) | (2.6) |
Loss on debt redemption and refinancing activities | 0 | (4.9) |
Other income | 6.6 | 2.6 |
Other expense | (0.9) | (1.7) |
Other expense, net | $ (0.8) | $ (15) |
Net Earnings Per Common Share_2
Net Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net earnings | $ 82 | $ 61.9 |
Distributed and allocated undistributed net earnings to unvested restricted stockholders | 0 | 0 |
Net earnings available to common stockholders | $ 82 | $ 61.9 |
Denominator: | ||
Weighted average number of common shares outstanding - basic (in shares) | 144.9 | 144.1 |
Basic net earnings per common share: | ||
Basic net earnings per common share (in dollars per share) | $ 0.57 | $ 0.43 |
Numerator: | ||
Net earnings available to common stockholders | $ 82 | $ 61.9 |
Denominator: | ||
Weighted average number of common shares outstanding - basic (in shares) | 144.9 | 144.1 |
Effect of unvested restricted stock units (in shares) | 0.5 | 0.7 |
Weighted average number of common shares outstanding - diluted under treasury stock (in shares) | 145.4 | 144.8 |
Diluted net earnings per common share (in dollars per share) | $ 0.56 | $ 0.43 |